Key Insights at a Glance
- MOHELA administers federal and private student loans but does not originate them.
- Your monthly statements will come from MOHELA, and payments are made directly to them if they service your loans.
- To identify your loan servicer, you can call the Federal Student Aid Information Center, access your Federal Student Aid online account, or examine your billing statements.
The Missouri Higher Education Loan Authority, widely known as MOHELA, acts as a facilitator handling the backend of both federal and private student loans. It’s important to clarify that MOHELA isn’t a loan originator; instead, it takes charge of crucial operational roles like billing, payment processing, tracking repayment progress, and sorting out borrower issues.
When MOHELA is assigned as your loan servicer, expect all billing statements and payment requests to come from them. For actions such as applying for deferment, forbearance, or switching payment plans, MOHELA serves as the point of contact.
Taking the Measure: Is MOHELA a Reliable Loan Servicer?
With four decades under its belt within the student loan servicing landscape, MOHELA carries a reputation marked by a blend of praise and criticism. Interestingly, between 2022 and 2024, MOHELA was responsible for processing the highest volume of student loan forgiveness applications among Federal Student Aid (FSA) contractors. Yet, alongside that achievement, the servicer has faced allegations of confusing borrowers and mishandling accounts.
Common Federal Loan Types Serviced by MOHELA Include:
- Direct subsidized loans
- Direct unsubsidized loans
- Direct PLUS loans
- Direct consolidation loans
Note that MOHELA no longer manages the Public Service Loan Forgiveness (PSLF) or TEACH Grant programs. Since May 2024, these services have been overseen directly by the U.S. Department of Education through StudentAid.gov.
Additionally, MOHELA holds contracts with certain private lenders, including financial institutions such as SoFi and Laurel Road. Loans obtained or refinanced through these lenders will be administered by MOHELA, blending federal and private servicing expertise.
Confirming MOHELA as Your Loan Servicer
While receiving a welcome packet from your loan servicer at the onset of repayment is standard, there are several ways to verify whether MOHELA is in charge of your loans:
- Log in to your Federal Student Aid account online and look under the “My Loan Servicers” section.
- For private student loans, inspect your credit reports or billing statements.
- Access your lender’s online portal, if available, to confirm the servicer’s identity.
Snapshot of MOHELA’s Legal Challenges
Legal disputes involving loan servicers don’t automatically spell trouble for borrowers but warrant due diligence. In July 2024, the American Federation of Teachers filed a complaint alleging mismanagement and urged a review of the Department of Education’s contract with MOHELA.
Student Loan Statistics to Consider
As of 2023, MOHELA services over 6 million federal and private student loans nationwide, making it one of the largest servicers. Its portfolio has included billions in loan balances, highlighting its significant role in student debt management. The company’s involvement in loan forgiveness efforts helped process upwards of $15 billion in loan relief during the 2022-2024 window.
Making Payments to MOHELA: Available Options
MOHELA provides a variety of convenient channels for repaying your student loans, including but not limited to:
- Autopay: Enroll in MOHELA’s automatic debit system to have payments withdrawn monthly from your account. This option often comes with a reduced interest rate incentive for consistent enrollment.
- Online Payments: Submit payments manually via MOHELA’s official online portal or through your bank’s bill-pay facility.
- Phone: Dial toll-free 888-945-4701 for payments within the U.S., or call 636-532-0600 for international payments.
- Mail: Send a check or money order made out to MOHELA, making sure to include your account number prominently to avoid misallocation.
To pay online, you will be required to establish an account with MOHELA, supplying your Social Security number, legal name, and birth date. Afterward, you’ll set up login credentials and provide contact details. Options for paperless billing or mailed statements are available to suit your preferences.
Getting in Touch with MOHELA
As your designated loan servicer, MOHELA is tasked with addressing inquiries and resolving loan-related complications. Aside from an extensive online information center, assistance can be sought by submitting secure messages through their portal or contacting service representatives via phone.
Customer support operates Monday through Friday with varying hours depending on loan type. However, automated payment and account information services remain accessible around the clock.
For written correspondence, use the mailing address found on MOHELA’s contact page—taking care not to send payments there, as they require a distinct remittance address.
Filing Disputes with MOHELA: A Step-by-Step Overview
Start the dispute resolution process by reaching out directly to MOHELA through one of their contact methods. Document all interactions meticulously—note dates, times, representatives’ names, and pertinent conversation details. Should you communicate by mail or email, preserve copies of all correspondence.
If direct engagement fails to resolve the matter, borrowers have recourse to third-party support. Contact the Federal Student Aid Ombudsman Group for additional guidance or submit a formal complaint to the Consumer Financial Protection Bureau (CFPB).
Despite recent setbacks—including legal scrutiny and losing stewardship of the PSLF program due to alleged poor management—MOHELA continues to be a heavyweight in the student loan servicing industry. It maintains oversight of a substantial segment of federal and private student loans nationwide.
If MOHELA administers your loans, it’s crucial to familiarize yourself with their payment procedures, dispute processes, and communication channels. Keep abreast of news related to MOHELA’s service practices to safeguard your borrower rights. Though the servicer may not be your original choice, reassigning your federal loan servicer is an option through federal consolidation—but approach this carefully, ensuring it benefits your financial situation.