The US Department of Education contracts with various loan servicers to manage federal student loans. Currently, Mohela (formerly known as the Pennsylvania Higher Education Assistance Agency or PHEAA) is a prominent servicer handling a significant portion of these loans. Understanding Mohela's role and how to navigate its services is crucial for millions of borrowers. This comprehensive guide will answer your key questions about Mohela and its relationship with the Department of Education.
What is Mohela and What Do They Do?
Mohela is a government-contracted loan servicer responsible for managing federal student loans on behalf of the US Department of Education. Their services include:
- Account management: Providing access to your loan information, including balances, payment due dates, and repayment plans.
- Payment processing: Accepting loan payments through various methods.
- Communication: Responding to borrower inquiries and providing updates on account status.
- Repayment plan options: Helping borrowers choose and enroll in suitable repayment plans, including income-driven repayment (IDR) plans.
- Deferment and forbearance: Assisting borrowers in managing temporary pauses in their loan payments.
- Loan consolidation: Helping borrowers combine multiple federal student loans into a single loan.
- Forgiveness programs: Providing information and assistance with loan forgiveness programs, such as Public Service Loan Forgiveness (PSLF).
What Loans Does Mohela Service?
Mohela services a wide range of federal student loans, including:
- Direct Subsidized Loans: Loans where the government pays the interest while the borrower is in school at least half-time.
- Direct Unsubsidized Loans: Loans where the borrower is responsible for all interest charges.
- Direct PLUS Loans: Loans for parents of undergraduate students and graduate students.
- Federal Family Education Loan (FFEL) Program loans: While FFEL loans are no longer being issued, Mohela may still service some existing loans from this program.
How Do I Contact Mohela?
Mohela offers various ways to contact them:
- Online: Their website provides a comprehensive FAQ section and online account access.
- Phone: They have a dedicated customer service phone number.
- Mail: You can send correspondence to their mailing address. Note: Always refer to the most up-to-date contact information on the official Mohela website.
What if I Have Problems with My Mohela Account?
If you encounter problems with your Mohela account, such as incorrect information or difficulty making payments, you should:
- Review your account statements: Carefully check your statements for accuracy.
- Contact Mohela customer service: Explain your issue clearly and provide any necessary documentation.
- Escalate the issue: If you're not satisfied with the initial response, you can escalate your issue to a supervisor or higher authority within Mohela.
- Contact the Federal Student Aid Office: If you are unable to resolve your issues with Mohela, you can contact the Federal Student Aid Office for assistance.
What are the different repayment plans offered through Mohela?
Mohela offers a variety of repayment plans to suit different financial situations. These include:
- Standard Repayment Plan: Fixed monthly payments over a 10-year period.
- Graduated Repayment Plan: Payments start low and gradually increase over time.
- Extended Repayment Plan: Payments are spread over a longer period (up to 25 years).
- Income-Driven Repayment (IDR) Plans: Payment amounts are based on your income and family size. These plans include Income-Based Repayment (IBR), Pay As You Earn (PAYE), Revised Pay As You Earn (REPAYE), and Income-Contingent Repayment (ICR).
How do I consolidate my federal student loans with Mohela?
Consolidating your federal student loans simplifies your repayment process by combining multiple loans into a single loan with one monthly payment. While Mohela might service your loans after consolidation, the consolidation process itself is usually handled through the Federal Student Aid website. Information on consolidation options is readily available on the official Department of Education website.
Is Mohela a reputable company?
Mohela is a government-contracted servicer, meaning they are held to certain standards and regulations by the Department of Education. While individual experiences may vary, the Department of Education works to ensure servicers provide borrowers with the support and information they need. If you have concerns about Mohela's performance, reporting them to the Department of Education is important.
This information is for general guidance only. Always refer to the official Mohela and Federal Student Aid websites for the most accurate and up-to-date information regarding your federal student loans. Remember to carefully review your loan documents and actively manage your account.
