Mohela is not a student loan lender. Instead, Mohela is a student loan servicer, which means they get paid to collect payments and answer questions about repayment.
Because Mohela services both federal and private student loans, it may confuse borrowers. For example, the Mohela website prominently features information about loan forgiveness and income-driven repayment. Sadly, these resources are only available to borrowers with federal loans.
The good news for borrowers is that it is easy to determine whether your Mohela loans are federal or private. Additionally, resources are available to help borrowers repay both loan types.
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 should always research ahead of time. 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 serviced by Mohela don’t have a uniform set of rules.
Instead, the original student loan contract specifies the terms and conditions of the private loan. Mohela’s job is to collect payments and answer questions about the loan.
Borrowers struggling with their private loan should contact Mohela about a potential loan modification or hardship assistance. Lender help usually isn’t guaranteed, but many lenders prefer getting some payments instead of nothing.
Borrowers looking for a lower monthly payment or reduced interest rate may succeed by refinancing their private loans. This option is usually only available to borrowers with a decent credit score and income, but an eligible cosigner may also help.
Contacting Mohela Customer Service
Borrowers have several options for contacting Mohela.
888.866.4352 (Toll Free)
633 Spirit Drive
Chesterfield, MO 63005-1243
Finally, borrowers can receive assistance by sending a secure message through the Mohela website.