SEARCH TODAY'S NEWS ARCHIVES

FSA Announces Transfer Update on FedLoan Accounts

By Hugh T. Ferguson, NASFAA Senior Staff Reporter

Federal Student Aid (FSA) in a recent updated notice announced that the student loan servicer MOHELA will be servicing certain types of loans previously administered by FedLoan (PHEAA), which elected to not extend its servicing contract and is currently in the process of exiting the federal student loan portfolio.

“We have also determined that MOHELA will be the future servicer for borrowers in the Public Service Loan Forgiveness (PSLF) Program and the Teacher Education Assistance for College and Higher Education (TEACH) Grant Program,” FSA wrote in an updated announcement published Dec. 22, 2021. “All borrowers enrolled in PSLF and all TEACH Grant recipients will remain with FedLoan Servicing until they are transferred to MOHELA later in 2022.”

FSA also indicated that it would provide updates to this webpage in order to inform borrowers of impending details concerning loan transfers.

With the federal student loan payment pause now extended through May, the Department of Education (ED) has additional time to sort through administrative hurdles that could make resuming student loan repayment a bumpy process.

Stay tuned to Today’s News for more updates on the student loan system in the wake of the pandemic.

 

Publication Date: 1/4/2022


Jennifer A | 1/11/2022 3:47:07 PM

What about borrowers who would like to participate in the PSLF program but they've been transferred to a new loan servicer who isn't MOHELA. Say the borrower was under PHEAA, is now under NAVIENT; would these borrowers have the option to enroll in the PSLF program is they became eligible for it during the last 2 years?

You must be logged in to comment on this page.

Comments Disclaimer: NASFAA welcomes and encourages readers to comment and engage in respectful conversation about the content posted here. We value thoughtful, polite, and concise comments that reflect a variety of views. Comments are not moderated by NASFAA but are reviewed periodically by staff. Users should not expect real-time responses from NASFAA. To learn more, please view NASFAA’s complete Comments Policy.

Related Content

Today's News for February 26, 2024

MORE | ADD TO FAVORITES

Consensus: Student Debt Relief Committee Agrees on Financial Hardship Language

MORE | ADD TO FAVORITES

VIEW ALL
View Desktop Version