MOHELA hits a major milestone in student loan forgiveness
MOHELA, a nonprofit government corporation, has made substantial progress for borrowers in the Public Service Loan Forgiveness (PSLF) program. To date, it has processed nearly $55 billion in forgiveness for 737,000 individual borrowers. That scale puts MOHELA among the most prominent players in federal student loan servicing.
A long-standing commitment to borrowers
For 40 years, MOHELA has focused on serving borrowers with steady, practical support. Recent results have reinforced its standing with people in public service—teachers, nurses, first responders, and many others. As the organization notes, “No servicer in the history of the Public Service Loan Forgiveness program has processed more loans held by teachers and other public servants than MOHELA.” The work has been large in number and direct in impact.
Record processing during a turbulent return to repayment
As the Federal Student Aid (FSA) office managed an unprecedented return to repayment, MOHELA scaled up quickly. In 2023, on FSA’s behalf, MOHELA helped six million borrowers enter repayment and handled more than 3.1 million customer service calls. Meeting that demand meant hiring additional staff, rolling out new customer service technologies, and doing both while navigating reduced funding and tighter resources. The goal was simple: keep borrowers moving without losing their footing.
Keeping service quality high
Even with the pressure of heavy call volume and rapid change, MOHELA reports current hold times averaging 1–5 minutes. That short wait helps borrowers get answers when they need them. During the return to repayment, and following FSA’s guidance, MOHELA also used call deflection strategies to manage the anticipated surge—directing people to the right channel at the right time so more calls could be resolved faster.
Why this moment matters
From July 1, 2022, to April 30, 2024, MOHELA served as the interim PSLF servicer. In that period, it processed the largest amount of PSLF forgiveness ever recorded: nearly $55 billion. It’s a notable marker for the program and for the borrowers who reached forgiveness after years of qualifying payments and public service.
Following federal rules, end to end
As a federal contractor, MOHELA follows all FSA requirements and guidelines that govern the student loan repayment process. Those standards set expectations for accuracy, timeliness, and borrower support. By keeping its operations aligned with those rules, MOHELA aims to meet the evolving needs of federal borrowers and the program itself.
Responding to misleading claims
In March 2024, MOHELA sent a cease-and-desist letter to the Student Borrower Protection Center, disputing what it described as a misinformation campaign about MOHELA’s role and performance as a federal contractor. The organization also states that recent lawsuits from special interest groups are without merit. Its stated aim is to correct the record and ensure borrowers receive a fair, accurate account of its work.
About MOHELA
MOHELA supports roughly eight million borrowers on behalf of the U.S. Department of Education’s Office of Federal Student Aid (FSA). In FSA’s quarterly surveys, the organization is regularly ranked among the top servicers, reflecting a focus on customer service and operational follow-through. The mission has been consistent for decades: help borrowers understand their options, stay on track, and, when eligible, reach forgiveness.
Frequently Asked Questions
What does MOHELA do for the PSLF program?
MOHELA is a federal contractor that processes loans within the Public Service Loan Forgiveness program, helping eligible borrowers move toward and receive loan forgiveness. From July 1, 2022, to April 30, 2024, it served as the interim PSLF servicer.
How much PSLF forgiveness has MOHELA processed, and for how many people?
MOHELA has processed nearly $55 billion in forgiveness for 737,000 individual borrowers. These borrowers largely work in public service roles such as education, health care, and public safety.
How is MOHELA maintaining customer service quality during high demand?
MOHELA reports average hold times of 1–5 minutes. It has added staff, implemented new customer service technologies, and, per FSA guidance, used call deflection strategies to handle heavy call volumes during the return to repayment.
What action did MOHELA take in response to misleading claims?
In March 2024, MOHELA sent a cease-and-desist letter to the Student Borrower Protection Center, disputing statements it viewed as misinformation. MOHELA also maintains that recent lawsuits brought by special interest groups are without merit.
How long has MOHELA been serving borrowers, and who does it support?
MOHELA has been operating for 40 years and supports approximately eight million borrowers on behalf of FSA. It is frequently ranked among the top servicers in FSA’s quarterly surveys.
