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Are Mohela Loans Federal or Private?

Mohela services both federal and private loans. Fortunately, there is an easy way to separate the federal loans from the private loans.

Written By: Michael P. Lux, Esq.

Last Updated:

Affiliate Disclosure and Integrity Pledge

Mohela isn’t a student loan lender; rather, it’s a student loan servicer. This distinction is crucial: instead of issuing loans, Mohela is responsible for collecting payments and providing information about repayment options.

One common source of confusion for borrowers is that Mohela services both federal and private student loans. For example, Mohela prominently displays information about loan forgiveness and income-driven repayment plans. However, it’s important to note that these options are exclusively available to those with federal loans.

Fortunately for borrowers, identifying whether your loans with Mohela are federal or private is straightforward. Additionally, there are resources available to assist in the repayment of both types of loans.

How do I know if my Mohela loans are federal?

The Department of Education keeps detailed records on all federal student loans.

Borrowers can access these records at studentaid.gov. If your Mohela loans are listed, they are federal. If the loans do not appear, they are private.

A phone call to Mohela can also clarify any confusion about loan status. The Mohela contact information is available here.

Digging Deeper: If your loans are more than ten years old, you may have federal loans that are privately or commercially held.

Loans that are federal but not federally held, such as some FFELP loans, may have limited repayment and forgiveness options.

Repayment Options and Forgiveness for Mohela Federal Loans

If you have federal student loans, the rules and options for the loan are the same, regardless of who services the loans.

Mohela should assist borrowers in determining program eligibility and enrollment. However, borrowers are ultimately responsible for decisions made. If a borrower makes a mistake because the loan servicer provided bad advice or inaccurate information, there usually isn’t a remedy for the borrower.

The following guides may be helpful for borrowers trying to figure out what to do with their federal loans:

Sherpa Tip: Think of Mohela as a helpful resource instead of the final authority on student loan questions.

In many cases, loan servicers are an excellent source of information. However, many borrowers may regret not double-checking the information they receive.

Options and Strategy for Mohela Private Loans

Private loans managed by Mohela don’t follow a standard set of rules.

The specific terms and conditions of your private loan are outlined in your original student loan agreement. Mohela’s job is to collect payments and answer questions about the loan.

If you’re facing difficulties with your private loan, reaching out to Mohela could lead to possibilities like loan modification or hardship assistance. While assistance from lenders isn’t always a sure thing, many are open to receiving some payment rather than none at all.

For those seeking to lower their monthly payments or reduce interest rates, refinancing private loans might be a viable solution. This option typically requires a good credit score and stable income, though having a qualified cosigner can also be beneficial.

Contacting Mohela Customer Service

Borrowers have several options for contacting Mohela.

By Phone:

888.866.4352 (Toll Free)
636.532.0600 (International)

By Mail:

633 Spirit Drive
Chesterfield, MO 63005-1243

Finally, borrowers can receive assistance by sending a secure message through the Mohela website.

About the Author

Student loan expert Michael Lux is a licensed attorney and the founder of The Student Loan Sherpa. He has helped borrowers navigate life with student debt since 2013.

Insight from Michael has been featured in US News & World Report, Forbes, The Wall Street Journal, and numerous other online and print publications.

Michael is available for speaking engagements and to respond to press inquiries.

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