MOHELA 2026 Guide: Repayment, PSLF, and Loan Transfer
MOHELA 2026 Guide: Repayment, PSLF, and Loan Transfer
Introduction
MOHELA—the Missouri Higher Education Loan Authority—is one of the largest federal student loan servicers in the United States. If your loan balance shows MOHELA as your servicer, you are one of nearly 8 million borrowers whose accounts are managed by this Missouri-based agency.
As of 2026, MOHELA faces significant changes: the SAVE Plan ended by court order in March 2026, PSLF regulations were updated effective July 1, 2026, and the servicer continues to draw scrutiny from senators and federal lawsuits over customer service failures. This guide covers everything you need to know about MOHELA in 2026—repayment plans, contact information, PSLF processing, loan transfers, and how to protect your borrower rights.
Quick Answer
MOHELA (Missouri Higher Education Loan Authority) is a federal student loan servicer established in 1981. It manages Direct Loans, FFEL Program loans, and PSLF processing for nearly 8 million borrowers. As of 2026, MOHELA's contact number is 1-888-866-4352 for Direct Loans. The SAVE Plan ended March 10, 2026, and PSLF regulations updated July 1, 2026.
1. What Is MOHELA and What Does It Do?
MOHELA's Role in Federal Student Loans
MOHELA was established by the Missouri General Assembly in 1981 to assure access to higher education for students in Missouri. Today, it operates as a governmental entity contracted by the U.S. Department of Education to service federal student loans.
MOHELA's responsibilities include:
Managing borrower accounts and processing payments
Administering income-driven repayment (IDR) plans
Processing Public Service Loan Forgiveness (PSLF) applications
Handling deferment and forbearance requests
Providing customer service and account support
How MOHELA Fits Into the Federal Loan System
MOHELA is your loan servicer, but it does not receive your payments directly. According to MOHELA's official documentation, payments are sent to Federal Student Aid's (FSA) vendors, not MOHELA. MOHELA is paid a small monthly fee to manage your account.
Who handles what:
| Function | Responsible Party |
|---|---|
| Payment processing | FSA vendors |
| Refunds | MOHELA initiates; U.S. Treasury processes |
| Interest rates | Set by Congress |
| Repayment plans | Determined by Congress or FSA |
| Account management | MOHELA |
MOHELA's Portfolio and Reach
MOHELA services loans for nearly 8 million borrowers and is the servicer most associated with PSLF processing. The agency has over 40 years of experience in the student loan servicing industry.
2. MOHELA Repayment Plans in 2026
Income-Driven Repayment (IDR) Plans
MOHELA offers multiple repayment plans, including plans based on income and family size. IDR payments can be as low as $0 per month, depending on your circumstances.
Available IDR plans through MOHELA:
Income-Based Repayment (IBR): Payments based on total federal loan debt, annual income, state of residence, and family size
Income-Contingent Repayment (ICR): Being phased out by July 1, 2028
Pay As You Earn (PAYE): Being phased out by July 1, 2028
According to Investopedia, Parent PLUS borrowers must finish consolidating their loans by June 30, 2026, to retain access to income-driven repayment plans.
The End of the SAVE Plan
On March 10, 2026, a court order ended the Saving on a Valuable Education (SAVE) Plan. The U.S. Department of Education is contacting impacted borrowers, who can explore and apply for other repayment plans.
Key SAVE Plan facts for 2026:
SAVE Plan payments were paused since July 2024 due to legal challenges
Borrowers have a 90-day window after July 1, 2026, to select a new repayment plan
Borrowers in SAVE forbearance must select a new plan after receiving notice from MOHELA
Standard and Tiered Repayment Plans
MOHELA also offers Standard, 2-Tier, 3-Tier, and Graduated Repayment plans. For example, a $10,000 loan at 8.25% interest has a 120-month Standard plan payment of approximately $123 per month.
3. MOHELA Contact Information and Customer Service
Phone Numbers and Hours (2026)
Direct Loan (DL) Servicing:
Toll-free: 1-888-866-4352
International: 636-532-0600
TTY: Dial 711
Hours: Monday 8 AM–9 PM ET; Tuesday–Wednesday 8 AM–8 PM ET; Thursday–Friday 8 AM–6 PM ET
FFEL Program and CASH Loan Servicing:
Toll-free: 1-800-945-4701
International: 636-534-2815
Hours: Monday–Wednesday 7 AM–6 PM CT; Thursday–Friday 7 AM–5 PM CT
Online Account Access
Borrowers can manage accounts 24/7 through mohela.studentaid.gov. Payment and automated account information is available by phone 24/7.
Available online services:
View account balance and payment history
Change repayment plans
Upload documents securely
Generate loan verification letters
Access 1098-E tax statements
Customer Service Challenges
MOHELA has faced significant criticism for customer service failures in 2026. According to a January 2026 amended lawsuit, MOHELA borrowers wait approximately seven times as long as ED Financial borrowers to reach a representative—and more than 50 times as long as borrowers with Aidvantage, CRI, and NelNet. MOHELA's call abandon rate exceeds 14% .
In August 2026, nine senators—including Elizabeth Warren and Bernie Sanders—launched an investigation after MOHELA allegedly sent false delinquency notices to borrowers who were current on payments or in forbearance. The erroneous notices claimed loans were "severely past due" or at risk of wage garnishment.
4. PSLF and Loan Forgiveness Through MOHELA
How PSLF Works With MOHELA
The Public Service Loan Forgiveness (PSLF) program is managed by the U.S. Department of Education, not MOHELA. However, MOHELA has historically been the primary servicer for PSLF borrowers.
Key PSLF updates for 2026:
On October 30, 2025, the Department of Education published final PSLF regulations effective July 1, 2026
For now, there are no impacts to borrowers, payment counts, or discharges
Employment Certification processing has shifted to Federal Student Aid (FSA) directly
How to Apply for PSLF
Borrowers should use the PSLF Help Tool at StudentAid.gov/pslf. The PSLF Buyback program allows borrowers to pay for months that did not previously count toward forgiveness.
Other Forgiveness and Discharge Programs
MOHELA also processes:
Teacher Education Assistance for College and Higher Education (TEACH) grants
Total and Permanent Disability (TPD) discharge
Closed school discharge
Borrower defense to repayment
5. Loan Transfers and What They Mean for You
Why Loans Transfer to MOHELA
Servicing transfers are a normal business practice. MOHELA replaced Navient as the servicer for many FFEL Program loans, and the handoff finished on October 21, 2024.
In 2026, Earnest private student loans will transition to MOHELA starting October 26, 2026. Some federal student loan accounts are being transferred away from MOHELA to other servicers as part of Department of Education restructuring.
What to Do When Your Loan Transfers
Upon receiving confirmation of a loan transfer, borrowers should:
Establish an online account with the new servicer and save the new servicer's information
Update contact information with the new servicer
Redirect payments —update banking information or auto-payment settings
Update StudentAid.gov with your current contact information
Download PSLF-related documents while you still have access to your MOHELA account
According to the California Department of Financial Protection and Innovation, borrowers should review their PSLF counts and balances after transfer to ensure accuracy.
Key Takeaways
MOHELA is a federal student loan servicer managing accounts for nearly 8 million borrowers, with over 40 years of experience
The SAVE Plan ended March 10, 2026 by court order; borrowers have 90 days to select a new repayment plan
MOHELA's Direct Loan contact number is 1-888-866-4352, available Monday–Friday
PSLF regulations updated July 1, 2026, with no immediate impact to payment counts or discharges
Customer service wait times are the worst among federal servicers, with a 14% call abandon rate and ongoing Senate investigation
FAQ Section
Q: What does MOHELA stand for?
A: MOHELA stands for the Missouri Higher Education Loan Authority. It was established by the Missouri General Assembly in 1981 and operates as a federal student loan servicer contracted by the U.S. Department of Education.
Q: How do I contact MOHELA about my student loans?
A: For Direct Loans, call 1-888-866-4352 (Monday–Friday, 8 AM–9 PM ET). For FFEL Program loans, call 1-800-945-4701. You can also manage your account 24/7 at mohela.studentaid.gov.
Q: What happened to the SAVE Plan in 2026?
A: A court order ended the SAVE Plan on March 10, 2026. Borrowers who were enrolled in SAVE must select a new repayment plan within 90 days after July 1, 2026. The Department of Education is contacting impacted borrowers.
Q: Does MOHELA process PSLF?
A: MOHELA services loans for most PSLF borrowers, but the PSLF program itself is managed by the U.S. Department of Education. Employment Certification processing shifted to Federal Student Aid (FSA) starting May 2024. Apply for PSLF at StudentAid.gov/pslf.
Q: Why are my loans being transferred to MOHELA?
A: Servicing transfers happen when the Department of Education reassigns loan portfolios. MOHELA replaced Navient for FFEL Program loans in 2024 and will begin servicing Earnest private loans in October 2026. Borrowers cannot choose their federal servicer.
Conclusion
MOHELA remains a central player in federal student loan servicing in 2026, managing accounts for nearly 8 million borrowers while navigating major program changes—the end of the SAVE Plan, updated PSLF regulations, and ongoing scrutiny over customer service failures. If MOHELA services your loans, stay proactive: verify your repayment plan before the 90-day SAVE deadline, use the PSLF Help Tool at StudentAid.gov, and document every interaction with the servicer.
Your student loan journey does not have to be overwhelming. Use the contact numbers, online tools, and borrower protections outlined in this guide to stay in control.
Is MOHELA your loan servicer? Share your experience in the comments—your story could help other borrowers navigate the system. If this guide helped you, please share it and subscribe for more student loan insights.
Comments
Post a Comment