Federal student loan-related matters aren’t necessarily straightforward, and recent shifts have made things trickier regarding loan servicers and forgiveness programs. This article explores how federal student loan forgiveness will affect MyFedLoan accounts, how to find your loan servicer, and the frequently asked questions borrowers have.
What Was MyFedLoan?
MyFedLoan, which is managed by the Pennsylvania Higher Education Assistance Agency (PHEAA), was one of the largest federal student loan servicers. It took care of elements of loan repayment like billing, customer service and administering programs like Public Service Loan Forgiveness (PSLF).
Now go to MOHELA
The last loan that MyFedLoan serviced was in December 2022. Accounts formerly under MyFedLoan were therefore moved to other servicers, and MOHELA took over PSLF accounts. Customers should’ve received alerts about this change and may now get loan-related help from MOHELA.
Federal Loan Forgiveness for Students in Public Service
Borrowers hired in preparing for government employment are eligible for loan forgiveness through the Public Service Loan Forgiveness (PSLF) program. It’s important to know how this changes your PSLF progress as MyFedLoan changes to MOHELA. Key points:
- To monitor your qualified payments, keep sending MOHELA your Employment Certification Form (ECF).
- MOHELA now handles the management of the 120 qualifying payments needed for PSLF eligibility.
- Direct all PSLF-related questions to MOHELA to guarantee accurate, current information.
The Navient Federal Loan Servicing Ban
Once a prominent federal student loan servicer, Navient was sued for allegedly poor management and deceptive policies. The CFPB, or Consumer Financial Protection Bureau, barred Navient from processing government student loans and fined $120 million in September 2024.
Consequences for Debtors:
Previously, Navient served borrowers were moved to different servicers. Verify your present servicer to guarantee appropriate loan administration. Affected borrowers could be eligible for compensation included in the settlement. Keep updated about any correspondence regarding possible reparation.
Who Services Loans for Federal Student Loans?
The U.S. Department of Education has contracts with several companies to service federal student loans. The main servicers — taking into consideration recent changes like the exit of MyFedLoan and the banning of Navient — now are:
- MOHELA: Manages PSLF accounts and other federal loans.
- Nelnet: Servicers a large portion of federal student loans
- Edfinancial: Handles many federal student loans.
Keeping your contact information updated and checking mail from your servicer will help make sure you’re getting timely information on your loans.
FAQ’s
Does my PSLF progress change once my MyFedLoan gives way to MOHELA?
MOHELA currently looks after PSLF accounts. They will still be maintaining your PSLF application and monitoring your qualifying payments. Make sure you check your account for changes and send your Employment Certification Forms to MOHELA.
How can I verify if another servicer received my loans from MyFedLoan?
Notifications about the transfer should have reached you. You may also access your current loan servicer information by logging into your Federal Student Aid account.
Should Navient have past served me, what should I do?
Former Navient management borrowers have been transferred to other servicers. To guarantee smooth loan administration, you must find your new servicer via the Federal Student Aid website and start correspondence.
Does the new servicer change the terms of my loan?
Though your servicer has changed, the terms and circumstances of your federal student loan remain the same. To guarantee correctness, nevertheless, you should check your account information with the new servicer.
How may I seek public service-based federal student debt forgiveness?
Whether you switch companies or yearly, file the Employment Certification Form to apply for PSLF. Your servicer may help you petition for debt forgiveness after 120 qualifying payments made while employed for an eligible company.
Are there any other forgiveness programs available in addition to PSLF?
Indeed, alternative forgiveness schemes exist, such as the Income-Driven Repayment (IDR) plan forgiveness and Teacher Loan Forgiveness.