The Missouri Higher Education Loan Authority (MOHELA) is a major U.S. student-loan servicer. It does not itself issue federal student loans, but acts on behalf of the U.S. Department of Education (ED) and others to manage billing, payments, account servicing and other administrative functions. (mohela.studentaid.gov)
Founded in 1981 by the Missouri General Assembly, MOHELA initially focused on guaranteeing and servicing student loans under the Federal Family Education Loan Program (FFELP). (Wikipedia) Over time, it has grown into one of the largest servicers in the country, handling millions of borrower accounts. (Wikipedia)
What kinds of student loans does MOHELA service?
MOHELA handles multiple types of federal student loans, including:
- Direct Subsidized Loans (undergraduate, need-based) (mohela.com)
- Direct Unsubsidized Loans (undergraduate/graduate, not need-based) (mohela.com)
- PLUS Loans (for parents of undergraduates, or graduate/ professional students) (Student Loan Professor)
- Direct Consolidation Loans (combining multiple federal loans into one) (Student Loan Professor)
In some cases, MOHELA may also handle private student loans through partnerships with banks or other lenders, though its primary function and reputation are tied to federal loans. (Protect Borrowers)
Key Services You Should Know About
Here are the major services offered by MOHELA to borrowers:
1. Online Account/Register & Access
You can register and log into your account on the MOHELA website. Once logged in, you can:
- View your loan details (balance, interest, payment history) (mohela.com)
- Make payments or set up automated payments (mohela.studentaid.gov)
- Upload documentation, update contact info and choose paperless delivery (mohela.com)
2. Repayment Plan Options
MOHELA manages the repayment process and helps borrowers evaluate different plans:
- Standard repayment (fixed payments, up to 10 years) (servicing.mohela.com)
- Income-driven repayment plans (payments based on income/family size) (servicing.mohela.com)
- Forbearance, deferment, consolidation options for special circumstances (mohela.com)
3. Loan Forgiveness & Discharge Programs
If you qualify under certain criteria, MOHELA administers or assists with loan forgiveness / discharge:
- Public Service Loan Forgiveness (PSLF) — for those in eligible public service jobs who make 120 qualifying payments. (mohela.com)
- Temporary Expanded Public Service Loan Forgiveness (TEPSLF) — backing payments not originally eligible under PSLF. (servicing.mohela.com)
- Teacher Loan Forgiveness, Closed-School Discharge, Disability Discharge, Death Discharge. (mohela.com)
Why Does MOHELA Matter to You?
If you have federal student loans and MOHELA is your servicer, then:
- Your payments, loan balance and status will be processed through MOHELA’s systems.
- Mistakes or mis-communications by MOHELA can directly impact your repayment progress, credit score and eligibility for forgiveness programs.
- Knowing how to use their tools, track your payments, and select the best plan can save you money and stress.
- With loan payments resumed after pandemic relief periods, your servicer interactions have become even more important.
Recent Issues & What to Watch Out For
Complaints & Regulatory Action
- In October 2023, the Department of Education withheld $7.2 million from MOHELA after finding they failed to send monthly bills to 2.5 million borrowers, resulting in 800,000 borrowers missing payments. (Protect Borrowers)
- The American Federation of Teachers (AFT) filed a lawsuit alleging MOHELA misled borrowers, used “call deflection” practices (routing borrowers away from live agents), and failed to service PSLF properly. (Higher Ed Dive)
- Borrowers have reported problems like mis-applied payments, delayed updates, wrong repayment plan assignments. (Protect Borrowers)
Tips to Protect Yourself
- Verify your servicer: Go to Federal Student Aid (FSA) at StudentAid.gov and check which company services your loan. Even if MOHELA is listed, changes may occur. (mohela.studentaid.gov)
- Monitor your payment counts: Especially if you’re pursuing PSLF — track how many qualifying payments you’ve made and verify they’re counted. Delays or mis-reporting can be detrimental.
- Check your bills: Ensure your monthly statement lists the correct loan(s), payment due, due date, and that you’re on the correct repayment plan.
- Document everything: Save emails, chat transcripts, records of payments and interactions. If there’s a servicing error, you’ll need proof.
- Stay updated: Servicing rules, forgiveness programs and repayment options are evolving—especially post-pandemic. Being proactive helps.
Step-by-Step Guide: If Your Loans Are Serviced by MOHELA
- Log in or register at MOHELA’s website (after verifying your account via FSA). (mohela.com)
- Review your loans – check how many accounts, balances, interest rates, loan types.
- Select the right repayment plan – use tools/loan simulator on StudentAid.gov or via MOHELA’s site. (servicing.mohela.com)
- Set up auto-payments if possible – many plans offer interest-rate reductions for automatic payments.
- Consider forgiveness options if you’re eligible – e.g., working in public service, teaching in a qualifying school, etc. (mohela.com)
- Update your info annually – for income-driven plans you’ll need to re-certify income and family size each year, or risk payment increases. (servicing.mohela.com)
- Keep documentation – save statements, communications, and verify payment counts especially if you’re aiming for PSLF.
- If you spot errors, contact MOHELA right away – miss-applied payments or incorrect plan assignments can cost you thousands in extra interest.
Final Thoughts
- MOHELA plays a significant role in the U.S. student-loan ecosystem. If your federal loans are managed by them, your actions (or inaction) around payments, plan selection and verification matter.
- The servicer role means they are not the lender, but the administration point: billing, servicing, applying programs, interacting with you.
- Because of some recent service failures and regulatory scrutiny, borrowers should be especially vigilant when dealing with MOHELA.
- The good news: being informed, proactive and organized gives you the power to manage your loans and mitigate risk of servicing glitches.