Summer Turns to Fall, FedLoans Turns to… ???

We hope this message finds you well as we bid farewell to the Summer season. With the CARES Act officially extended out to January 31^st, 2022, we might expect all to be quiet on the student loan front… but alas, the marketplace continues to evolve, and here are a couple of updates:

Loan Servicing Issues:

Over the past year, my team has assembled a list of errors, grievances, and red flags arising from servicers administering the CARES Act interest and payment halt. Check out our latest update HERE. If you’re looking for one-on-one support from an expert Advisor… now is an excellent time to get your strategy in order. You can schedule a consultation with our partner Doctors Without Quarters HERE, and use the coupon code pslfjobs20 for a 20% discount.

A New Servicer for PSLF?

As we’ve mentioned, FedLoans announced over the summer that they don’t intend to renew their servicing contract with the Dept. of Education. The earliest potential exit date is December 14^th, but we suspect all of the administrative considerations around transitioning to a new servicer(s) may keep them committed into 2022… even beyond the end of the CARES Act benefit.

THAT said, it seems that a new player has entered the equation… though we haven’t seen an official announcement yet. A few of our clients received notices from FedLoans that “MOHELA” will be taking over their loan servicing.

This begs the question… what the heck is a MOHELA? If this name is not familiar to you… well, that’s to be expected, unless they have serviced your loans in the past. The Missouri Higher Education Loan Authority, aka MOHELA, has been in the servicing game for 40 years. In our experience, their customer service has been outstanding over the years (ok, the bar has been set pretty low), and when we got wind of this, we breathed a modest sigh of relief that maybe this servicer transition thing won’t be so messy, after all…

As always… until DEBT do us part.

About Author

Jason DiLorenzo

Jason is the Founder of BenElevate, an early stage fintech company working to address the student debt crisis by bringing to bear tools, expertise, and bespoke solutions to streamline student debt management for borrowers and employers.