What Is MOHELA? What To Know About This Servicer

The Missouri Higher Education Loan Authority, or MOHELA, is a student loan servicer that handles both federal and private student loans. MOHELA doesn’t provide student loans and is not a lender. Instead, it takes care of the administrative tasks that come with managing student loans, including billing borrowers, processing payments, keeping track of repayment progress and resolving issues.

If MOHELA is your student loan servicer, you’ll receive bills from and make payments to MOHELA. If you need to apply for deferment or forbearance or change your payment plan, you’ll apply through MOHELA.

Is MOHELA a good loan servicer?

MOHELA has been a name in the student loan industry for 40 years and, like many student loan companies, has mixed reviews. While MOHELA did process the largest amount of student loan forgiveness by a Federal Student Aid (FSA) contractor between 2022 and 2024, it was simultaneously accused of misleading student loan borrowers and mismanaging their accounts.

Borrower reviews on Trustpilot share the same negative sentiment. Of all its reviews, 98 percent give the company one star, with many reporting being unhappy about long wait times, poor customer service and incorrect billing.

What types of student loans does MOHELA service?

MOHELA services many different types of student loans, that are either federal or private. Depending on the financial aid you received, you may have one or the other or both.

As an FSA contractor, MOHELA services federal student loans, including:

• Direct subsidized loans.
• Direct unsubsidized loans.
• Direct PLUS loans.
• Direct consolidation loans.

While MOHELA services federal student loans, it is no longer the servicer for the Public Service Loan Forgiveness (PSLF) or TEACH Grant programs. As of May 2024, these programs are now serviced by the U.S. Department of Education, via StudentAid.gov.

MOHELA is also the loan servicer for some private student loan lenders, like SoFi and Laurel Road. If you take out a student loan with one of these companies or refinance your student loans with them, your private loans will be managed by MOHELA.

How do I know if MOHELA is my servicer?

While you should receive a welcome letter from your loan servicer at the start of your student loan repayment, there are a few ways to find out if MOHELA services your loan.

To find out who your federal loan servicer is:

• Call the Federal Student Aid Information Center at 800-433-3243.
• Log into your Federal Student Aid account and review the “My Loan Servicers” section.

To find out who your private student loan servicer is:

• Review your credit reports or billing statements.
• Log into your lender’s online portal, if you use one to manage your loans.

Lawsuits against MOHLEA

While lawsuits involving a student loan servicer are not automatically a negative mark, borrowers should be aware of any cases involving the company that administers their loans.

In July 2024, the American Federation of Teachers filed a lawsuit against MOHELA over misleading and illegally overcharging borrowers and failing to process paperwork in a timely manner. Another lawsuit was filed in September 2024, including one by California student borrowers, who allege MOHELA failed to discharge their loans after an order by the Department of Education. These lawsuits are still ongoing.

Additionally, over 50 members of Congress penned a letter to the Department of Education, claiming mismanagement and requesting the department review its contract with MOHELA.

How to make MOHELA student loan payments

MOHELA offers several ways to pay your student loans. These include:

• Autopay. Enroll in MOHELA’s auto debit program, which will automatically pull the payment from your account each month and may come with an interest rate reduction for signing up and keeping it active.
• Online payments. Make manual online payments through MOHELA’s portal or by using your financial institution’s bill-pay service.
• Phone. Pay over the phone via 888-945-4701 toll-free nationwide or via 636-532-0600 if you’re abroad.
• Postal service. Mail a check or money order addressed to MOHELA and include your account number on the check to ensure the payment is credited to the correct account.

To make a payment online, you’ll need to create an account with MOHELA. This will require you to provide your Social Security number, full legal name and date of birth. You’ll then have to choose a username and password. MOHELA will also ask for your address, phone number and email address. You can choose paperless statements or have the monthly statements mailed to you.

As your loan servicer, MOHELA is responsible for answering questions and helping resolve issues with your loan. In addition to an onine information center, you can get help by sending a secure message on its contact page or by calling one of its service lines.

MOHELA’s customer service is available Monday through Friday, with hours of operation varying by the type of loan. However, payment and automated account information is available to borrowers 24/7 through an automated phone line.

If you’d like to send correspondence, you can do so by writing MOHELA using the address found on its contact page. Do not send payments to this address.

How to file a dispute with MOHELA

The first step toward filing a dispute with MOHELA is contacting the servicer directly, using one of the methods provided. Be sure to keep detailed notes about when and how you reached out, who you spoke to and any details or specifics discussed in the conversation. If corresponding by mail or email, keep comprehensive records of your exchange.

If you are unable to settle matters with MOHELA directly, you may reach out to the U.S. Department of Education to submit a complaint. If your dispute or complaint is still not resolved, you can escalate it to the Federal Student Aid Ombudsman Group for additional assistance or file a complaint with the Consumer Financial Protection Bureau (CFPB).

Bottom line

MOHELA has recently faced legal challenges and had the PSLF program removed from its portfolio due to alleged mismanagement and other poor servicing practices. Still, it is among one of the largest student loan servicers in the country, managing both federal and private student loans.

If MOHELA is your servicer, make sure you understand how to make payments on your loan, contact MOHELA about issues and file a dispute correctly. Stay up to date on student loan news involving the servicer and know your rights as a borrower. While you may not have chosen MOHELA to manage your loan, you may be able to change your servicer by consolidating your federal loans or refinancing your private student loans. Just make sure it makes financial sense to do so.