Navigating Your MOHELA Student Loans: A Comprehensive Guide

Managing student loans can be a complex undertaking. This guide aims to provide comprehensive information regarding MOHELA student loans, covering various aspects from account management and payment options to deferment, forbearance, and loan forgiveness programs.

Accessing Your MOHELA Account

Online Portal

MOHELA offers a user-friendly online portal where borrowers can access benefits, review repayment options, and manage their accounts. The portal allows you to:

View statements and correspondence.
Make payments.
Update contact information.
Manage Auto Pay.

User Name and Password

Your User Name and Password are unique identifiers that only you know. For maximum security, you should avoid using public computers when modifying your personal or banking information.

Contacting MOHELA

General Contact Information

While specific contact information such as phone numbers and addresses may vary depending on your individual account and needs, it's essential to know how to reach MOHELA for assistance.

Mailing Addresses

Payment Address: Your payment address may be different based upon your specific account information. Please log in or call for your payment address.
General Correspondence: Department of Education - MOHELAP.O. Box 790453St. Louis, MO 63179-0453.

Phone

Call 1-888-866-4352 (Toll Free) for assistance.

Read also: MOHELA Payment Options

Secure Messaging

You can contact MOHELA by sending a secure message through their online portal.

Complaints and Appeals

If you are not satisfied with the initial response from a customer service representative, you may request a second review. If you remain dissatisfied after the initial escalation, you can appeal the decision to MOHELA’s Customer Advocate team or Ombudsman team. An appeal means you’re asking them to look at your case again and telling them why you want them to consider.

Making Payments

Payment Methods

Online: Paying online is the quickest and easiest way to calculate and make your payment. Payments are accepted from Checking and Savings accounts. Online payments typically take 2-4 business days from the payment processing date to post.
Phone: Payments made via phone also take 2-4 business days from the payment processing date to post.
Mail: Your payments should be sent to MOHELA and include your 10 digit MOHELA Account Number. Your payment address may be different based upon your specific account information. Please include your 10-digit Account Number. Department of Education - MOHELAP.O. Box 790453St. Louis, MO 63179-0453. currency. It may take the longest for your payment to process.
Financial Institution's Online Bill Pay: If using your financial institution's online bill pay option, please update your account number and change the payment address to that of your new servicer.
Auto Pay: Enrolling in Auto Pay can qualify you for a 0.25% interest rate reduction (subject to conditions). Keep in mind this reduction remains in effect while you are actively participating in the Auto Pay program. Auto Pay can be managed by selecting Auto Pay in the navigation. Auto Pay payments typically take 2-4 business days from the scheduled due date to post, plus an additional 1 to 2 days.

Understanding Your Bill

Monthly billing statements are generated approximately 21 days prior to your due date. If you are enrolled in school at least half time, you will not receive monthly billing statements, but you will receive an annual interest notice.

Payment Amount Changes: Your payment may have changed because of an adjustment to your repayment terms. Changes and recalculated payment amounts ensure your loans are paid off by the expected due date.
Due Date Changes: You can choose a more convenient due date if your account is current. This change generally takes 1 to 2 billing cycles to take effect. Please contact MOHELA with your preferred due date.
Past Due Amounts: You have a past due and a current amount due.
Interest: You owe payments for principal and interest. Pay the outstanding interest amount to avoid interest capitalization.

Payment Application

Payments are applied to outstanding interest first, then to the principal balance. Past due amounts are satisfied first, followed by current due amounts.

Overpayments: Payments made over the required amount will be applied to the highest interest rate loan first. If loans are at the same rate of interest, MOHELA will apply the overpayment to the unsubsidized loan first, then to the subsidized loan.
Specifying Payment Allocation: To specify how you want a payment applied, include instructions for how to apply the payment, indicating the disbursement date, loan type and indicate this is a "one-time payment instruction".

Cancelling Payments

To cancel a scheduled or pending payment, locate the payment in the Recent Payments section of the Account Summary page, click the 'x' and select Yes to confirm. To cancel Auto Pay select Auto Pay from the navigation to open the Manage Auto Pay window.

Auto Pay

Enrollment and Benefits

Enrolling in Auto Pay allows MOHELA to automatically deduct your loan payments from your bank account each month. This can qualify you for a 0.25% interest rate reduction.

Managing Auto Pay

Auto Pay can be managed by selecting Auto Pay in the navigation. From there, you can:

Change your bank account information.
Increase the amount to be automatically deducted.
Add additional loans for Auto Pay.
Cancel your Auto Pay.

Important Considerations

Continue to make manual payments until you receive confirmation that your request has been processed and approved.
You will be sent notification of your first withdrawal date and which loan(s) will be included in the withdrawal.
Auto Pay and the applicable 0.25% interest rate reduction will not occur during periods of deferment or forbearance.
If your Auto Pay application was denied this may be due to your loan/account status.

Deferment and Forbearance

Deferment

Deferment is a temporary postponement of payment that may be available if you meet certain eligibility requirements, such as being enrolled in school at least half-time. Interest continues to accrue on unsubsidized loans during periods of deferment. Accrued interest will capitalize (be added to your principal balance) at the end of a deferment. Deferments are an entitlement if you qualify.

Forbearance

Forbearance is a temporary postponement of payment and should be requested as a last resort. Interest continues to accrue on all types of loans during forbearance. Time spent on a forbearance may not count toward Public Service Loan Forgiveness or Income-Driven Repayment Forgiveness.

Important Considerations for Both

Additional eligibility criteria and requirements may apply for both deferment and forbearance.
Loans remain the responsibility of the borrower during periods of deferment and forbearance.
Auto Pay and the applicable 0.25% interest rate reduction will not occur during periods of deferment or forbearance, but will resume at the end of your deferment or forbearance.

Loan Forgiveness Programs

Public Service Loan Forgiveness (PSLF)

The Public Service Loan Forgiveness (PSLF) program forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer. The Department of Education (ED), not MOHELA, determines the eligibility of employment and payments towards PSLF.

Read also: MOHELA Student Loan Information

Income-Driven Repayment (IDR) Forgiveness

Income-Driven Repayment (IDR) plans offer forgiveness after a certain number of years (typically 20 or 25 years) of qualifying payments.

Considerations for Loan Forgiveness

Time spent on a forbearance may not count toward Public Service Loan Forgiveness or Income-Driven Repayment Forgiveness.
Ensure you understand the specific requirements and eligibility criteria for each program.
ED determines the eligibility of employment and payments towards PSLF, not MOHELA.

Repayment Plans

Available Plans

MOHELA offers a variety of repayment plans to suit different financial situations. These plans may offer extended repayment periods.

Income-Driven Repayment Plans

Call 1-888-866-4352 (Toll Free) and provide income and family size information to determine which repayment plan you qualify for that will work best for you. You will then receive a prefilled application for review and signature. You can also request assistance to change from one IDR plan type to another IDR plan type.

Repayment Obligation

Your Repayment Obligation will be sent to you prior to entering repayment on your loan.

Loan Transfers

In some cases, the Department of Education (ED) needs to transfer loans from one servicer to another servicer. When federal student loans transfer from one servicer to another servicer, your loans will still be owned by ED.

Payments During Transfer: Continue to make payments to your previous servicer so that they may post it to your account. This process to occur. MOHELA will post your payment within one business day after it is received from your previous servicer.
Automatic Debit: If your next payment is scheduled for automatic debit, we do not anticipate any interruption.
Updating Information: Please update your account number and change the payment address to that of your new servicer.

Additional Information

Returning Funds

Refunds from the school are applied as a reduction in the "Original Principal". This will reduce the portion of your loan that is returned within the timeframe described. MOHELA will then adjust any interest and loan fees that apply to the amount of the loan that is returned.

Loan Status Reporting

The status of your student loan(s) is reported monthly to the nationwide consumer reporting agencies. Negative information, including late and missed payments, as well as default, may be reported.

Paying Off Loans Early

If you are ready to pay off one or more of your student loans, congratulations! Paying online is the quickest and easiest way to calculate and make your payment. The Online payoff amount includes your current balance, and any outstanding unpaid interest that will accrue over the next 10 calendar days until the final payment would be received. There is no maximum limit to the amount you can pay each month, and you have the option to select if you want your due date to be advanced on your loans and pay your loan off sooner.

One-Time Payment Instructions

To specify how you want a payment applied, include instructions for how to apply the payment, indicating the disbursement date, loan type and indicate this is a "one-time payment instruction".

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