MOHELA Announced as the New PSLF Servicer

Kyle Flynn, CSLP |

If you have Federal Student Loans, you may have received some sort of communication about your loans being transferred to a new servicer. The Department of Education currently contracts 8 servicers to handle the billing, repayment plan selection, and other services & communication to federal loan borrowers. FedLoan Servicing was previously handling Public Service Loan Forgiveness, however during the student loan COVID forbearance in 2021, they decided to sever ties and pass this responsibility onto another loan servicer.

MOHELA (Missouri High Education Loan Authority) has since been announced as the next designated servicer for Public Service Loan Forgiveness.

So, what does this mean for early-career physicians?

Did you start residency prior to 2020?

The Department of Education has begun the process of transferring your loans from FedLoan Servicing to MOHELA. This will be a gradual process that isn’t expected to be completed until the Fall after the waiver closes.  

If you have yet to complete an employment certification form to track your qualifying payments, you will want to do this as soon as possible. Not only will this start counting your qualifying payments, but it should also assist in the automatic transfer of your loans.

Did you start residency in 2020, 2021, or 2022?

The Department of Education may have designated you to either MOHELA or Aidvantage, who took over for Navient. If you are already with MOHELA, there is nothing you need to do to transfer your loans. Separately, though, you will need to enroll in an income-driven repayment plan and check the different boxes required to make qualifying payments towards Public Service Loan Forgiveness

What if my loans are with Great Lakes, HESC/EdFinancial, Aidvantage, Nelnet, ECSI, or OSLA?

You will want to fill out an Employment Certification Form.  This will transfer your loans to MOHELA in addition to starting the clock on your payment.

What if my loans are in Default?

The Department of Education contracts a Default Resolution Group to assist with reinstating your loans and establishing a payment plan. There are many caveats for when you balance is due and whether payments have counted towards Public Service Loan Forgiveness or not, so make sure to sit down with someone who understands this space and can help guide you through it.



To schedule a no-obligation, introductory conversation with our Financial Advisor specializing in Student Loan Guidance, Kyle Flynn, CSLP, use his calendar link here or the button below. Kyle provides financial planning services with a focus on your current financial position and debt management.


Kyle is a registered representative and investment advisor representative of Securian Financial Services Inc.

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