Student Loan Servicer Changes Coming Soon

The Department of Education has confirmed that it will transfer an unspecified number of student loan accounts away from the Missouri Higher Education Loan Authority, better known as MOHELA, by the end of the year. This was revealed in a letter to Senator Elizabeth Warren (PDF File), who was asking for information from the Department of Education about the current status of repayment and forgiveness programs. 

While the department has not provided details about how many accounts will move or which servicers will take them, officials did say that this will include some of the PSLF portfolio. “FSA is prioritizing efforts to improve customer service,” Sarah Ursprung, Acting Assistant Secretary for Legislation and Congressional Affairs, wrote in a letter to Senator Elizabeth Warren.

For borrowers, the news brings both relief and apprehension. A change in servicer might resolve long-standing frustrations, but the process of transferring accounts has often been messy in the past.