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MOHELA Student Loans Review: How to Get Student Forgiveness Loan

If you’ve ever received student loans through the government, there’s a good chance that MOHELA student loans are for you. MOHELA collects payments from borrowers and provides customer support to their borrowers. This article provides an overview of what MOHELA is all about.

MOHELA, also known as the Higher Education Loan Authority of the State of Missouri, is a non-profit student loan service provider that manages federal and private student loans.

Compared to most other loan service providers, MOHELA has fewer complaints and better ratings with an A + on the Better Business Bureau (BBB).

However, like most servicers, MOHELA receives various complaints from some borrowers who allegedly receive incorrect information about their loans or that their loan with reference is being handled improperly.

What is MOHELA?

MOHELA works with students and graduates who have faced many different types of financial circumstances and offers a number of options designed to make repayment easier, helping students move along the road to being debt-free.

If you have MOHELA student loans, it is important to know how the company operates and how to repay your debt.

What types of loans does MOHELA offer?

MOHELA offers federal student loans under the Direct Loan and Federal Loan for Family Education (FFEL) programs.

Federal student loan services are awarded by the Department of Education to borrowers when the loan payment is made. Borrowers have no say in which loan manager they are awarded.

The Department of Education awards new federal loans to loan service providers based on customer satisfaction scores. As of December 2018, Mohela was awarded 20% of all federal student loans, more than any other service provider.

Student loan repayment via MOHELA

As a federal service provider, MOHELA offers borrowers access to all federal loan repayment options. There are three refund methods based on the duration of the refund:

Standard repayment plan

Your MOHELA student loans will be placed in this repayment schedule by default. Standard plans can last up to ten years and have a fixed monthly payment ($ 50 minimum). The monthly loan payments are based on the total loan amount.

Graduated repayment plan

The phased plans start with lower monthly installments and increase every two years over the life of the loan. This is usually ten years.

Extended repayment plan

Similar to graded plans, extended plans have a 25-year term. MOHELA borrowers will end up paying more with this option due to interest.

Income-based repayment plan

In addition to duration, you can also choose a federal repayment plan based on your income. These plans are referred to as income-based repayment plans (IDRs). Each IDR plan has its own requirements, terms, and conditions.

There are four IDR plans to choose from:

  1. Pay as you earn (PAYE)
  2. Pay as Earnings Revised (REPAYE)
  3. Income-based reimbursement (IBR)
  4. Refundable Income (ICR)

IDR plans have fixed monthly payments based on the borrower’s income. Monthly payments can increase as income increases. It is also possible to reduce monthly payments to $ 0 with IDR plans.

Does MOHELA forgive student loans?

You may be entitled to cancel some of your loans in the following situations:

  • If you are on an income-based repayment plan and have made payments on time for 20-25 years, you may be entitled to have the remaining balance on your loans canceled. However, keep in mind that the forgiven amount is considered taxable income, so you will have to pay taxes on it
  • If a government or nonprofit worker has an income-based repayment plan and has made 10 years of eligible payments, you may be eligible for public service loan forgiveness
  • If you are a teacher, you can also qualify for the forgiven loan if you teach full-time at a low-income school for five consecutive years. If you fit the bill, you may be able to have up to $ 17,500 in forgiven loans
  • In the event of the death of the primary borrower or an employee student on a PLUS loan, the loans may be eligible for partial or full discharge
  • If the school closes while you are enrolled and as a result, you are unable to complete the program or the school closes within 120 days after withdrawal, your loans may be eligible for discharge
  • If you are unable to work due to a disability or if you are a veteran who is unable to work due to a service-related disability, you may be able to prove that federal student loans have been discharged.

How to make a payment

You can make a payment securely by logging into your Mohela account. You can also call Customer Service at 888-866-4352 to make a payment or speak to a customer service representative about your refund plan options.

Michele offers an interest rate discount if you sign up to automatically withdraw payments from your bank account. Setting up automatic payments makes it easier to ensure that student loan payments are made every month.

If Mahela offers multiple student loans for you, your payment is generally applied evenly across all loans. If you’re focusing on repaying a loan earlier than expected and want to make higher payments on that loan only, you’ll need to contact Mohela to provide special instructions.

How can I apply for a Mohela student loan?

As with any federal student loan, the student loan process begins by filling out the Free Application for Federal Student Aid (FAFSA). This will tell you how much federal assistance you are entitled to through the Department of Education.

FAFSA information is shared with schools you have applied to or listed on the FAFSA form. Those schools will calculate how much help you can get from them.

When you are accepted into college, they will send you an award letter explaining how much aid you are eligible to receive from the school.

Everything related to your student loan will go through your school’s financial aid office until the loan is paid off.

If you are a new borrower, you will need to complete entry counseling and sign a principal promissory note (MPN). Your MPN is your agreement to repay your student loan.

MOHELA is not part of the student loan application process. They are only involved once the loan payment has been made and are assigned as a loan service provider. You will be contacted by MOHELA to set up your account and payment options.

You will go through MOHELA’s customer service to make any changes to your loan payments, switch to another repayment plan, or make other changes.

MOHELA alternatives

Although there are other student loan managers who also administer federal student loans, you cannot choose which manager is assigned to you.

If you’re not happy with Mohela, you can look into federal student loan consolidation through the Department of Education. If you take out a direct consolidation loan, you may be assigned a different servicer for your new loan.

You can also refinance student loans through a private student loan lender. You will forgo access to student loan amnesty and income-based repayment options if you privately refinance federal student loans.


How can I apply for a new loan? View steps for Federal Student Aid from the United States Department of Education. You will need to complete the Free Federal Student Aid Application (FAFSA) online and complete the steps with your school to determine your eligibility for Financial Aid.

  1. How much interest have I earned on my loan?

Select Account Home in the left column once logged in. Expand the content in Loan Overview. You’ll see accrued interest, total balance, interest rate, and more.

  1. How can I keep my loans at a manageable amount?

While you don’t need to make any payments right now, making some payments while you’re in school too can help you save money along the way and reduce the total amount you repay. Consider making unsubsidized loan payments that accrue interest while you are in school.

  1. Do I have to make payments while I am at school?

Based on the information we receive from your school, we will automatically postpone your payments if you are enrolled at least halfway through.

How many lessons do I have to follow to be enrolled at least half the time?

Each school can define “half time” differently. Please contact your school to determine how to define full-time, part-time, and part-time enrollment.

As one of the largest loan servicers used by the Department of Education, there’s a good chance you’ll see their name if you’re a new borrower.

If you have a different loan manager and want to switch to MOHELA, the only way to do this is to consolidate your loans into a direct consolidation loan.

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Eleena Wills
Hi, I’m Eleena Wills. Being a writer and blogger, I strive to provide informative and valuable articles to people. With quality, constructive, and well-researched articles, one can make informed choices. I cover a wide range of topics, from home improvement to hair styling and automotive.


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