Public Service Loan Program to be administered by different servicer beginning summer 2022
June 14, 2022
Student loan borrowers who are participating in the Public Service Loan Forgiveness Program (PSLF) will have a new servicer soon.
In a June 3 Electronic Announcement, the Department of Education announced that Federal Student Aid (FSA) will start transitioning the PSLF Program, borrowers, and their loans from FedLoan Servicing to MOHELA.
The change follows an announcement earlier this year from FedLoan Servicing that it will stop servicing federal student loans when its contract ends. According to the Department, the transition of the program to MOHELA is expected to continue through the summer until the early fall.
The Department reminds borrowers that this change will not impact the existing terms, conditions, interest rates, loan discharge or forgiveness programs, or available repayment plans on the loans. Also, the Department said the transition will not change the temporary payment suspension and 0% interest benefits borrowers are currently receiving due to the coronavirus emergency.
Borrowers and school, college access, or student loan professionals can get the most up-to-date information regarding this transition by visiting StudentAid.gov/fedloan or by contacting any of the following:
- The Federal Student Aid Information Center (FSAIC) at 1-800-4FEDAID,
- FedLoan Servicing at 1-855-265-4038, or
- MOHELA at 1-888-866-4352.
According to the announcement, FSA has implemented several changes to prepare for the transition of the PSLF Program from FedLoan Servicing to MOHELA to minimize the number of borrowers who might otherwise be subjected to multiple servicer transfers.