MOHELA Sets Record for Processing Highest Amount of Student Loan Forgiveness in Public Service Loan Forgiveness (PSLF) Program History

News provided by

Jul 10, 2024, 11:30 ET

Nearly $55 billion in PSLF forgiveness processed for 737,000 borrowers by MOHELA staff while operating as interim PSLF servicer

ST. LOUIS, July 10, 2024 /PRNewswire/ -- MOHELA, a governmental non-profit organization dedicated to helping the student loan borrowers it serves, announced it set a program record during its time as the U.S. Department of Education's Office of Federal Student Aid's (FSA) interim Public Service Loan Forgiveness (PSLF) servicer from July 2022 through April 2024.

"MOHELA is proud of our record in supporting the federal government as their interim PSLF servicer during its transition to a new loan servicing environment," said Scott Giles, CEO and Executive Director of MOHELA. "Our dedicated team of customer service representatives worked diligently to support federal borrowers during this time, setting the record for processing the highest amount of forgiveness in the history of the government-run program. This achievement reflects MOHELA's continued commitment to assisting and supporting the borrowers we serve as they repay their student loans."

From July 1, 2022, through April 30, 2024, MOHELA supported the federal government as the interim PSLF servicer while FSA transitioned to its new loan servicing environment through StudentAid.gov, which was announced by the Department in May 2022. During this time, MOHELA helped student borrowers who qualified for PSLF process their request to FSA for forgiveness.

During the history of the program, almost 876,000 borrowers have received PSLF forgiveness. Of those who received PSLF forgiveness under the program, MOHELA processed nearly $55 billion in PSLF forgiveness for over 737,000 borrowers at the direction of FSA. In contrast, directly prior to MOHELA becoming the PSLF servicer, only about 165,000 borrowers had received $10.5 billion in loan forgiveness during the previous five-year period from 2017 through June 2022.

The final decision on a borrowers request to discharge their loan under the PSLF Program is made by FSA as the owner of the loan, not MOHELA.

Borrowers seeking more information from ED about the transition of the PSLF Program to its new loan servicing environment can visit StudentAid.gov/streamlining.

About MOHELA
MOHELA is a governmental non-profit organization with 40 years of experience and a track record of providing exceptional customer service to the borrowers it serves. MOHELA plays an essential role in the federal student loan ecosystem, providing support and assistance for around eight million federal borrowers on behalf of the U.S. Department of Education's Office of Federal Student Aid (FSA). The organization is frequently named a top servicer in FSA quarterly surveys due to its performance and commitment to providing high-quality customer service to their borrowers.

In 2023, MOHELA was proud to assist more than 6 million federal borrowers in their return to repayment. MOHELA's customer service team facilitated over 3.1 million customer service calls and processed more than 2.36 million Income-Driven Repayment Plan applications and over 2.58 million payments to the federal government on behalf of borrowers throughout 2023.

Media Contact: [email protected]

SOURCE MOHELA