A new student loan company now takes on the accounts of public servants seeking to cancel their debt
“It also comes as borrowers still have 4 months to apply for extended student loan relief.”
Why it matters: Over the past few months, many student loan servicers have announced that they will stop serving at the end of 2022, including loans managed by FedLoan. Student loans managed by FedLoan will be transferred to MOHELA between July and December 2022. These changes will affect borrowers who have enrolled in the Public Service Loan Forgiveness Program (PSLF). According to a recent article, there are three main things that borrowers registered with the PSLF should know about the transfer. First, all borrowers will receive a transfer notice at least 15 days prior to any transfer. Second, anyone eligible for loan forgiveness between July and December will not have their loan transferred as the release will take place. Third, all PSLF requests completed after May 1, 2022 will be processed by MOHELA and not by FedLoan. “There is a lot of uncertainty about what awaits student loan borrowers in the months ahead, but with millions of account transfers, potential student loan relief and the resumption of payments,” borrowers who will see their transferred loans must remain vigilant. their account terms and PSLF status to immediately discuss any issues with the new servicer.
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