You can be well into your career and still find yourself repaying your federal student loan. Paying it off can take decades and proves to be challenging to most. Not to mention that student debt as the years go by becomes harder and harder to handle. That’s not good news to the newer generation.
Lucky for us, there are federal student loan servicers that make things easier. They are well-equipped and knowledgeable of the ins and outs of repaying student loan debt, the policies surrounding them, and are always ready to guide us throughout the process.
Is Mohela a federal student loan servicer? Yes, they are! Let’s get to know more about them, shall we?
Get To Know Mohela
Mohela is basically one of the (only) seven companies that are considered federal student loan service providers in the US. Mohela actually means Missouri Higher Education Loan Authority and its primary function is to collect and track student loan payments.
It is a non-profit and services private and federal student loans.
The company is set to be the only servicer for those who are about to enroll in the Public Service Loan Forgiveness as well as for the TEACH Grant Program by late 2022.
Mohela takes pride in its world-class service as well as in its dedication to helping borrowers pay off their student debts. Apart from equipping borrowers with the necessary tools to pay off their loans, they also provide guidance like no other and provide tailored solutions to certain federal student loan problems.
The Benefits of Working With Mohela
Mohela allows you to have access to your monthly statements and pay your bills once you’ve registered for an online account and activated it. You can also enroll for Autopay, which will not only automate your payments but also give you a 0.25% reduction on your loan interest. You will also have access to an income-driven repayment process which will enable you to limit your student loan repayment based on a percentage of your earnings.
Mohela may also help you out and provide robust solutions whenever there are instances that you won’t be able to pay your student loan on time, like a process deferment and forbearance request which will allow Mohela to put a temporary stoppage on your payments or reduce them.
This process allows you to stay in good standing even if you’ve missed some supposed payments. Please take note, though, that interest may continue to accumulate during such a period.
Mohela may also process additional payments for you if you’re able so you can pay off your federal student loan faster.
Are you stuck with Mohela for the lifetime of your loan? Probably not, as they are randomly assigned but the Department of Education to begin with and they can also change your federal student loan servicer whenever policies change.
Being on top of your federal student loan gives you the peace of mind to push through amidst the challenges life may bring. Service providers like Mohela are here to help us achieve our goals one payment at a time.