What is Mohela?

This is a servicer contracted by the Education Department. Mohela is in the servicers approved list on the website of Federal Student. They have been provided the servicing of student loans and closely working with the students and their families for more than thirty years.

How will I get to understand in case my education loan department has been transferred to MOHELA?

The Education Department may decide to give MOHELA your federally-owned student loan for servicing. In case it happens, Mohela contacts you once their system receives the loans that has been transferred. They will inform you that they have received the transferred loan and thereby include you in their list of contact. Once Mohela’s system gets all the necessary detail in regard to your account, they will be listed in the National Student Loan Data System (NSLDS) as a provider for your loan.

Mohela Student Loan

Mohela Student Loan

What is the reason behind the transfer of my loan servicing?

With the current legislative changes, many more federal loans require servicing. Over the past years, one company did the servicing of many loans that were owned by the federal government. However, its not the case now since the Education Department has contracted with a many of experienced student loan companies such as MOHELA to service the large amount of loans. The Education Department makes the selection of the servicer for your federal student loan and keeps ownership of your loan.

Will my school get to acknowledge the company that is servicing my Education department loans?

The time your Education Department loan has been transferred to MOHELA, they will inform the National Student Loan Data System (NSLDS). You together with the office of student financial aid can be able to view the information. The information cannot be reported on the National Student Loan Data System until there is full loading to the systems of the loans transferred, which takes about 14 days.

Who is required to take Over Your Loan?

Only six loan servicers would be mandated to handle the administration of your loan prior to this change. They are as follows; Direct Loan Servicing Center (ACS), Department of Education Student Loan Servicing Center (ACS), Great Lakes Educational Loan Services, Inc., Sallie Mae and FedLoan Servicing (PHEAA). MOHELA as a not-for-profit loan servicer, was the first to be awarded the existing loans, however, there was a total of 15 new contractors who were gifted with the alternative loans servicers. The contracts that are handled by these servicers have  dates of implementation that are between October 2011 and January 2013.


It doesn’t matter the administrator of your loan but you should be the one to stay top of your student loan.