Education Department Announces Major Student Loan Servicing Changes

Millions of borrowers will experience changes in loan servicers and a temporary pause in Public Service Loan Forgiveness processing this summer.

The Education Department is transferring loan servicing for over a million borrowers from MOHELA to other federal student loan servicers.
A temporary pause on the Public Service Loan Forgiveness (PSLF) program is in effect until July, affecting application processing and access to PSLF data.
Borrowers affected by the servicing changes will need to establish new online accounts and may need to re-enroll in automatic payment programs.
The changes aim to improve the borrower experience and are part of broader efforts to enhance student loan servicing.
MOHELA has requested these changes due to past issues with capacity and service quality, impacting loan management.