Nearly $55 Billion Processed for 737,000 Individual Borrowers, Including Teachers and Other Public Servants
ST. LOUIS, Sept. 10, 2024 /PRNewswire/ — MOHELA, a non-profit, government corporation, with 40 years of experience and a track record of providing exceptional customer service to the borrowers it serves, issued a statement today on its record as a federal contractor for the U.S. Department of Education’s Office of Federal Student Aid (FSA):
“No servicer in the history of the Public Service Loan Forgiveness (PSLF) program has processed the forgiveness of more loans held by teachers and other public servants than MOHELA. We are committed to providing the highest quality of customer service to the borrowers that we serve. We are proud of our work and our record, and we will vigorously defend it.”
Below are key facts on MOHELA’s record as a federal contractor:
- During the unprecedented return to repayment (R2R) event in 2023, MOHELA, on behalf of FSA, helped 6 million borrowers enter repayment and facilitated over 3.1 million customer service calls, while following FSA guidance to reduce funding and resources. MOHELA hired additional staff and invested in new customer service tools to continue to provide the highest quality of service for borrowers during the peak demand of return to repayment, and, as a result, is operated under a projected net loss of $54.4 million in fiscal year 2024.
- MOHELA’s current hold times average 1-5 minutes; its customer service policies, including those last fall during the return to repayment (R2R) surge, have always followed guidance from FSA. “Call deflection” was a technique that all contractors, including MOHELA, were directed to employ by FSA during the R2R period to address the anticipated dramatic call volume. FSA’s July 2023 Communications Playbook for R2R, issued before the start of R2R, repeatedly emphasizes the need for FSA’s loan servicers to utilize call deflection strategies.
- From July 1, 2022, through April 30, 2024, MOHELA served as the interim PSLF servicer and processed the largest amount of forgiveness—nearly $55 billion for 737,000 individual borrowers—by an FSA contractor in the history of the program.
- As a federal contractor, MOHELA adheres to FSA requirements and guidance that dictates the overall federal student loan repayment process, as well as the service and assistance that is provided to FSA borrowers.
In March 2024, MOHELA sent a Cease-and-Desist letter to the Student Borrower Protection Center, which can be viewed here, calling on the organization to immediately disband their PR campaign that is irresponsibly promoting false and misleading claims about MOHELA’s work as a federal contractor. Other special interest groups have continued to promote the same and similar false claims, including through lawsuits and PR attacks. In this country, anyone can file a lawsuit on any basis, which takes time to sort out in the courts. MOHELA asserts that recent lawsuits by such groups against MOHELA are without merit, which will ultimately be proved in court.
About MOHELA
MOHELA is a non-profit, government corporation, with 40 years of experience and a track record of providing exceptional customer service to the borrowers it serves. MOHELA plays an essential role in the federal student loan ecosystem, providing support and assistance for around 8 million federal borrowers on behalf of the U.S. Department of Education’s Office of Federal Student Aid (FSA). The organization is frequently named a top servicer in FSA quarterly surveys due to its performance and commitment to providing high-quality customer service to their borrowers.
SOURCE MOHELA
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