FAQs

Applying and being approved by MOHELA for scheduled automatic payments to be electronically debited from your banking institution may qualify you for a 0.25% interest rate reduction. Not all lenders offer the 0.25% interest rate reduction (subject to conditions). Keep in mind this reduction remains in effect while you are actively participating in the Auto Pay program. Auto Pay will not be in effect during periods of deferment or forbearance, and as a result, you will not receive the 0.25% interest rate reduction during these periods. Auto Pay will resume at the end of your deferment or forbearance, as will the applicable 0.25% interest rate reduction. If three consecutive payments are returned due to insufficient funds, Auto Pay will be cancelled going forward including the applicable 0.25% interest rate reduction. Should this occur you can reapply for Auto Pay. Other conditions may apply.

Apply for Auto Pay online by selecting Auto Pay in the navigation.

Continue to make manual payments until you receive confirmation that your request has been processed and approved. Once approved, you will be sent notification of your first withdrawal date and which loan(s) will be included in the withdrawal. This process may take one to two billing cycles so manual payments may be required.

If you have a loan(s) in a status that is not eligible for Auto Pay at the time you apply it may not be enrolled in Auto Pay. You may add the loan(s) to Auto Pay when the loan(s) status changes and becomes due for payment.

If your due date falls on a weekend or federal holiday, it may take up to an additional 3 business days for the payment to be withdrawn from your bank account and posted to your MOHELA account. Your due date will reflect as the effective date of your payment.

Yes, we will send a monthly reminder while you are signed up for Auto Pay.

You are eligible to sign up for Auto Pay if your loans are within 30-60 days of entering repayment, or if you are already in repayment.

Yes. To increase the amount to be automatically deducted, you can add an additional amount to your regular monthly payment. Select Auto Pay from the navigation to complete this change. All changes for the additional amount must be submitted at least three business days prior to withdrawal.

If you have multiple due dates and/or loans enrolled in Auto Pay, your additional amount will be prorated across all loans and due dates.

If only some of your loans are on Auto Pay, any amount requested to be withdrawn in addition to your monthly payment will be applied to the loans that are on Auto Pay and will not satisfy the bills of loans that are not signed up for Auto Pay. You may add the additional loans to your Auto Pay.

To make this change select Auto Pay from the navigation to manage your Auto Pay. From here you can target specific loans.

Select Auto Pay in the navigation then you may choose which loan(s) you want to add. Your request must be submitted at least three business days in advance of your due date.

This process may take one to two billing cycles to complete. In the meantime, please make manual payments for the loans that are due until you are notified that Auto Pay will begin.

Your account may be past due for one or more of the following reasons:

• We may still be processing your payment. Please allow up to three business days for the Auto Pay payment to appear on your MOHELA account.

• Changes to your Auto Pay information. If you change your bank account, verify the information is set up accurately. It may be interrupted for one to two billing cycles and manual payments may be required.

• Rejections from your Banking Institution.

• Activating new Auto Pay may take one to two billing cycles to complete.

• If Auto Pay was not debited from your Banking Institution, review and update your MOHELA account and make your payment manually.

• Not all loan sequences are set up for Auto Pay. Loan sequences that entered into repayment after the initial set-up of Auto Pay that have not been set-up for Auto Pay will require a manual payment. Paying additional amount on Auto Pay will not satisfy the loan sequence bill. Review your Auto Pay enrollment to ensure all loan sequences are set-up for Auto Pay.

Automatic monthly payments may only be debited from a bank account for which the borrower is listed as an authorized account holder.

Auto Pay and the applicable 0.25% interest rate reduction will not occur during periods of deferment or forbearance. Auto Pay and the applicable interest rate reduction are expected to automatically resume after periods of deferment or forbearance.

Auto Pay can be managed by selecting Auto Pay in the navigation. From here you can manage saved bank accounts, add or change an additional amount, and/or add additional loans for Auto Pay. Changing bank accounts may interrupt Auto Pay for one to two billing cycles before the change takes effect. Manual payments may be required if an interruption occurs. Changes must be submitted at least three business days in advance of your withdrawal.

By selecting Auto Pay from the navigation you are able to make changes to or cancel your Auto Pay. Alternatively, you can contact us. Changes must be submitted at least three business days in advance of your withdrawal date. Cancelling Auto Pay does not suspend payments that are or will be due.

If your Auto Pay application was denied this may be due to your loan/account status. Please refer to the Auto Pay denial letter that was sent to you for the denial reason.

We appreciate the service you have provided to our country, and we are here to help you manage your student loans, access benefits available on your loans and review repayment options. Contact our team of Servicemember and Veteran Liaisons at 855-278-3619 or MilitaryVIP@mohela.studentaid.gov for more information about these benefits from the U.S. Department of Education and the U.S. Department of Defense. There are special benefits and repayment options available for your loans. Learn more about military benefits.

If you are employed by a government or not-for-profit organization, you may be able to receive loan forgiveness under the Public Service Loan Forgiveness Program.

The Public Service Loan Forgiveness (PSLF) Program forgives the remaining balance on your Direct Loans after you have made 120 (10 years) qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer. Learn more to see whether you might qualify  this link will open in a new window.

If you teach full time at a low-income school or educational service agency, learn more about Teacher Loan Forgiveness requirements and how to apply.

If you are employed by a U.S. federal, state, local, or tribal government or not-for-profit organization, learn more about Public Service Loan Forgiveness  this link will open in a new window requirements and how to apply.

If you are totally and permanently disabled, you may qualify for a discharge of your federal student loans or Teacher Education Assistance for College and Higher Education (TEACH) Grant service obligation. Learn more about Total and Permanent Disability (TPD) loan discharge  this link will open in a new window requirements and how to apply.

If you have been impacted by a natural disaster, you may be able to postpone your payments. Learn more about disaster relief.

Billing statements generate approximately 20 to 25 days before your due date.

Paperless E-Delivery correspondence will be delivered to your message inbox. To view your messages, click Inbox on the navigation bar.

If you are enrolled in our Auto Pay program, please keep in mind that if you make additional payments, your Auto Pay will continue to withdraw your regular amount due each month plus any additional amount you have requested.

If you are enrolled in school at least half time, you will not receive monthly billing statements. You may receive an annual interest notice.

The U.S. Department of Education does not assess fees for late payment of federally-owned loans.

When you pay more than the required monthly payment amount, the additional funds are applied to the interest and principal at the time the payment is received and may also be applied toward future payments. This may cause the next month's bill to reflect a lesser amount than normally due, including an amount of $0.00 due. If this occurs, you can pay the lesser amount for that month or continue to pay your usual monthly payment amount, paying your account further ahead.

Please note: If you recently submitted an application for a different repayment plan, this could also cause the bill to reflect a lesser amount. A separate notification would have been sent to explain the terms of your new plan.

If you are unsure why your payment amount has changed, please send us a message or contact us for clarification.

Your higher amount due may be the result of one of the following:

1. You have a past due and a current amount due. Pay the full amount or contact us for options to bring your account up to date.

2. A statement has been generated prior to a payment posting to your account and it may not be reflected on your statement (if a payment for the past due amount has already been submitted, then you may pay only the current amount due).

3. Your payment may have changed as a result of an adjustment to your repayment terms. You will be notified via letter should your terms be adjusted because:

   • A deferment or forbearance recently ended or changed.

   • The type of repayment plan has changed.

   • The due date for your monthly payment has changed.

   • Interest was capitalized (added to the principal balance) on your loan(s).

   • The interest rate has changed.

   • The amount of your previous monthly payment was not sufficient to pay off the loan(s) within the number of months remaining.

   • Loans were combined under one Repayment Schedule.

You can choose a more convenient due date if your account is current. If your account is past due, please contact us to review options to bring your account current. Your due date may not fall on the 29th, 30th, or 31st day of the month. A due date change generally takes 1 to 2 billing cycles to take effect.

Please contact us by sending a secure message or by phone with your preferred due date. Changes typically take 2 to 3 business days to process. Once complete, we will send a notification regarding your due date change and when it will take effect.

A Direct Consolidation Loan allows you to combine multiple federal student loans into one loan, one payment and one fixed interest rate. If you consolidate loans other than Direct Loans—such as FFEL Program loans or Federal Perkins loans-consolidation may give you access to additional income-driven repayment plan options  this link will open in a new window, which could lower your monthly payment amount. If you decide to consolidate, you will need to review and complete an application and Promissory Note that indicates your understanding of the terms for the new Direct Consolidation Loan.

Learn more about the advantages and disadvantages of consolidation  this link will open in a new window, and how to apply if you decide to consolidate.

If your payment has not posted to your account on or before your due date, your account is considered delinquent.

To determine if your account is delinquent, visit your Account Summary page.

When an account is delinquent, calls or letters will continue until the appropriate option has been received, approved and placed on the account.

The status of your student loan(s) is reported monthly to the nationwide consumer reporting agencies. If your account is past due, your payment status, including late and missed payments, as well as default, may be reported. Late or missed payments or defaults reflected on your consumer credit report may adversely affect your consumer credit rating.

You may download and/or print your account information by navigating to Tools & Requests in the navigation and selecting 'Printable Account Details'.

You can find information for each CRA MOHELA reports to by visiting:

• www.transunion.com  this link will open in a new window

• www.equifax.com  this link will open in a new window

• www.experian.com  this link will open in a new window

Although not a nationwide CRA, MOHELA also reports to Innovis  this link will open in a new window.

• Common monthly account statuses reported:

  • Current – in repayment

  • Current – no payment due (Deferment or Forbearance)

  • Days Delinquent

    • 90

    • 120

    • 150

    • 180+

• The codes for the above statuses as they appear on your credit report may vary for each CRA. The CRAs interpret and display information sent to them by financial institutions. For example, some CRAs will use "OK" for current accounts, including those on a deferment or forbearance with no payment due. Others might show months with no payment due as "No Reporting". Please find information for how to read your credit report for each CRA by visiting:

  • www.transunion.com  this link will open in a new window

  • www.equifax.com  this link will open in a new window

  • www.experian.com  this link will open in a new window

  Although not a nationwide CRA, MOHELA also reports to Innovis ( www.innovis.com  this link will open in a new window).

Information MOHELA reports to the Consumer Reporting Agencies (CRAs) may remain on your credit report for 7 to 10 years (including loans paid in full, consolidated, forgiven or transferred to another servicer). Please find more information for each CRA MOHELA reports to by visiting:

• www.transunion.com  this link will open in a new window

• www.equifax.com  this link will open in a new window

• www.experian.com  this link will open in a new window

Although not a nationwide CRA, MOHELA also reports to Innovis  this link will open in a new window.

Each loan serviced by MOHELA is reported as its own tradeline. Consolidation loans (subsidized and unsubsidized) are reported as one tradeline.

In most cases, negative credit reporting to the nationwide Consumer Reporting Agencies (CRAs) will not be adjusted because the negative credit reporting was accurate as of the date of the reporting.

Please look at the left-hand column of the bill you received and note what is listed below "Bill Type." You may have received one of the following:

Based on information reported by your school, we will automatically postpone your payments if you are enrolled at least half-time at an eligible college or career school. If you're a graduate or professional student who received a Direct PLUS Loan, you may qualify for an additional six months of deferment after you cease to be enrolled at least half-time.

You will enter repayment within 60 days of the school receiving all of the loan funds unless you requested to defer payment while your student is in school. You may apply for a Parent PLUS Borrower Deferment while your student is in school and for up to six months after your student is no longer enrolled at least half time. The loan will continue to accrue daily interest.

Each school may define "half time" differently. Please contact your school to determine how they define full-time, half-time and part-time enrollment.

Navigate to Loan Details and select the loan you wish to view from the drop-down. You will see your Unpaid Interest, Current Balance, interest rate(s) and more.

View the Steps to Federal Student Aid  this link will open in a new window from the U.S. Department of Education. You will need to complete the online Free Application for Federal Student Aid (FAFSA)  this link will open in a new window and complete steps with your school to determine your eligibility for financial aid.

Although you are not required to make payments at this time, making payments while you are in school may help save you money down the road and reduce the total amount that you repay. Consider making payments toward unsubsidized loans that accrue interest while you are in school.

Depending on your career or the repayment plan you choose once you leave school, you may qualify for loan forgiveness down the road:

• Public Service Loan Forgiveness  this link will open in a new window

• Teacher Loan Forgiveness  this link will open in a new window

• Income-Driven Repayment Plans  this link will open in a new window

• Create an online account and make sure your and your references' addresses, phone numbers, names and email addresses are up to date so we can reach you with important account information. This can be updated directly through MOHELA or during the exit counseling process.

• You are not required to make payments at this time. If you can afford to make even some payments while you are in your grace period, it will save you money down the road and reduce the total amount that you repay.

• Create a budget to help you determine how much will be able to go toward student loans.

• Determine which repayment plan you qualify for that will work best for you. If you are unable to make your upcoming scheduled payments, contact us right away to explore your options.

Your Repayment Obligation will be sent to you prior to entering repayment on your loan. Details include your payment start date, monthly payment amount, projected amount of interest, principal balance and repayment plan.

Other repayment plans  this link will open in a new window or due dates may be available. We're here to help and can provide you with a custom solution.

In some cases, the Department of Education (ED) needs to transfer loans from one servicer to another servicer. If your federal student loans transfer from one servicer to another servicer, your loans will still be owned by ED. The "transfer" to another servicer simply means that a new servicer will provide the support you need to fully repay your loans.

If you have made payments to your previous servicer, please allow up to 60 days for the payment to be forwarded to MOHELA so that we may post it to your account. Please be reassured that no action should be necessary on your part for that process to occur. MOHELA will post your payment within one business day after it is received from your previous servicer. Meanwhile, if your account becomes past due please contact MOHELA for other options while your payment is being forwarded. We apologize for any inconvenience that this may cause and we sincerely appreciate your patience.

Participation in the Auto Pay program, including any interest rate reduction, will be received by MOHELA – no need to reapply! If your next payment is scheduled for automatic debit, we do not anticipate any interruption. However, if your payment is not withdrawn as expected, please don't hesitate to contact us.

We do not anticipate a change to your repayment terms; however, your repayment terms may be adjusted to account for placement of forbearances and/or deferments, changes to your due date, unpaid and capitalized interest, interest rate changes and recalculated payment amounts to ensure your loans are paid off by the expected due date. You will be notified via letter should your terms be adjusted.

Yes. Your payments should be sent to MOHELA and include your 10 digit MOHELA Account Number. If you paid using your financial institution's online bill pay option. Please update your account number and change the payment address.

Your payment address may be different based upon your specific account information. Please log in or contact us for your payment address. Note that this payment method takes the longest for your payment to process.

In some cases, the Department of Education (ED) needs to transfer loans from one servicer to another servicer. If your federal student loans transfer from one servicer to another servicer, your loans will still be owned by ED. The "transfer" to another servicer simply means that a new servicer will provide the support you need to fully repay your loans.

If you have made payments to MOHELA, please allow up to 60 days for the payment to be forwarded to your new servicer so that they may post it to your account. Please be reassured that no action should be necessary on your part for that process to occur. Meanwhile, if your account becomes past due please contact your new servicer for other options while your payment is being forwarded. We apologize for any inconvenience that this may cause.

Participation in the Auto Pay program, including any interest rate reduction, will be sent to your new servicer – no need to reapply! However, if your payment is not withdrawn as expected, please don't hesitate to contact your new servicer.

Yes. Please update your account number and change the payment address to that of your new servicer. Watch for information from your new servicer regarding their payment information.

Typically, federal Direct Loans must be repaid within 10 years from the time you enter repayment, however a variety of plans are available that may offer extended repayment periods. You may compare repayment plans using the Repayment Plan Evaluator or by calling us at 888-866-4352 (Toll Free).

Several repayment options are available to help manage your student loan account. Each repayment plan has distinct requirements which may result in paying less interest over time or offer greater benefits such as loan forgiveness. If your circumstances don't fit the repayment plans listed, we encourage you to call us at 888-866-4352 (Toll Free) to discuss other alternatives.

For Income-Driven Repayment (IDR) Plans

• Apply on StudentAid.gov  this link will open in a new window to automatically retrieve last year's income tax information from the IRS. Sign in using your Federal Student Aid ID and then select "Apply for Income-Driven Repayment." Follow the instructions to submit your application online.

• Call 888-866-4352 (Toll Free) and provide income and family size information. If you select an IDR plan we will send you a prefilled application for review and signature. You will need to send the completed application back to us with any applicable required documentation.

* If your loan(s) is past due or you missed the annual recertification for your repayment plan, please call us for assistance. If applicable, the 36-month period eligible for interest subsidy will not refresh if you change from one IDR plan type to another IDR plan type. Unpaid interest may capitalize (be added to the principal balance).

For All Other Repayment Plans

Call 888-866-4352 (Toll Free) for assistance in evaluating all other repayment plan options, some of which may only require your request by phone.

Income-Based Repayment (IBR) Plan

Recertification: Due Annually
Loan Forgiveness: After 20-25 Years
Important Information:

• Your payment is dependent on your income and family size, and payments can be as low as $0 per month.

• You must demonstrate need based on your total federal student loan debt, adjusted gross income and family size. If you no longer qualify for a reduced monthly payment, your monthly payment will be set at the 10-year payment.

• Monthly payments are generally set at 15% of your discretionary income (10% if you are a new borrower on/after July 1, 2014). They will never be higher than payments under a 10-year Standard Repayment Plan.

• On subsidized loans, you do not have to pay the difference between your monthly payment amount and the remaining interest that accrues for your first 3 consecutive years of repayment under the plan.

• Any remaining balance may be forgiven after 25 years of qualifying payments (20 years if you are a new borrower on/after July 1, 2014).

• Payments on this plan may qualify for the Public Service Loan Forgiveness Program.

• The amount of interest you pay over the life of your loan may increase on this plan.

• Eligible loan programs: FFELP and Direct Loans. Parent PLUS Loans or Consolidations that include Parent PLUS Loans are not eligible.

Learn more about the eligibility requirements and general information for income-driven repayment plans.

Apply on StudentAid.gov  this link will open in a new window to automatically retrieve last year's income tax information from the IRS. Sign in using your Federal Student Aid ID and then select "Apply for Income-Driven Repayment." Follow the instructions to submit your application online. You can create a FSA ID before completing the application.

If your account is past due or you missed the annual recertification for your repayment plan, please contact us for assistance.

Income-Contingent Repayment (ICR) Plan

Recertification: Due Annually
Loan Forgiveness: After 20-25 Years
Important Information:

• Payments can be as low as $0 per month.

• All Direct Loan borrowers qualify regardless of their income.

• Your monthly payments will be set at the lesser of 20% of discretionary income, or a percentage (based on income) of your payment on a standard plan with a 12-year repayment period.

• You are responsible for paying all of the interest that accrues.

• Any remaining balance may be forgiven after 25 years of qualifying payments.

• Payments on this plan may qualify for the Public Service Loan Forgiveness Program.

• The amount of interest you pay over the life of your loan may increase on this plan.

• Eligible loan program: Direct Loans only. Parent PLUS Loans are not eligible, unless consolidated after July 1, 2006.

Learn more about the eligibility requirements and general information for income-driven repayment plans.

Apply on StudentAid.gov  this link will open in a new window to automatically retrieve last year's income tax information from the IRS. Sign in using your Federal Student Aid ID and then select "Apply for Income-Driven Repayment." Follow the instructions to submit your application online. You can create a FSA ID before completing the application.

If your account is past due or you missed the annual recertification for your repayment plan, please contact us for assistance.

Pay As You Earn Repayment (PAYE)

Recertification: Due Annually
Loan Forgiveness: After 20 Years
Important Information:

• Your payment is dependent on your income and family size, and payments can be as low as $0 per month.

• You must demonstrate need based on your total federal student loan debt, adjusted gross income and family size. If you no longer qualify for a reduced monthly payment, your monthly payment will cap at the 10-year payment.

• Monthly payments are generally set at 10% of your discretionary income and will never be higher than payments under a 10-year Standard Repayment Plan.

• On subsidized loans, you do not have to pay the difference between your monthly payment amount and the remaining interest that accrues for your first 3 consecutive years of repayment under the plan.

• Any remaining balance may be forgiven after 20 years of qualifying payments.

• Payments on this plan may qualify for the Public Service Loan Forgiveness Program.

• The amount of interest you pay over the life of your loan may increase on this plan.

• Eligible loan program: Direct Loans only. Parent PLUS Loans or Consolidations that include Parent PLUS Loans are not eligible.

Learn more about the eligibility requirements and general information for income-driven repayment plans.

Apply on StudentAid.gov  this link will open in a new window to automatically retrieve last year's income tax information from the IRS. Sign in using your Federal Student Aid ID and then select "Apply for Income-Driven Repayment." Follow the instructions to submit your application online. You can create a FSA ID before completing the application.

If your account is past due or you missed the annual recertification for your repayment plan, please contact us for assistance.

SAVE (Saving on A Valuable Education)

Recertification: Due Annually
Loan Forgiveness: After 20-25 Years
Important Information:

• Your payment is dependent on your income and family size, and payments can be as low as $0 per month.

• Monthly payments are generally set at 10% of your discretionary income.

• On unsubsidized and subsidized loans, you do not have to pay the difference between your monthly payment amount and the remaining interest that accrues for the time spent on the plan.

• If you do not renew on time, you will be placed on an Alternative Repayment Plan and could be subject to payment adjustments when returning to SAVE.

• Any remaining balance may be forgiven after 20 years of qualifying payments for borrowers with undergraduate loans or 25 years of qualifying payments for borrowers with any graduate loans.

• Payments on this plan may qualify for the Public Service Loan Forgiveness Program.

• The amount of interest you pay over the life of your loan may increase on this plan.

• Eligible loan programs: Direct Loans only. Parent PLUS Loans or Consolidations that include Parent PLUS Loans are not eligible.

Learn more about the eligibility requirements and general information for income-driven repayment plans.

Apply on StudentAid.gov  this link will open in a new window to automatically retrieve last year's income tax information from the IRS. Sign in using your Federal Student Aid ID and then select "Apply for Income-Driven Repayment." Follow the instructions to submit your application online. You can create an FSA ID before completing the application.

If your account is past due or you missed the annual recertification for your repayment plan, please contact us for assistance.

Standard Repayment Plan

This plan sets up equal monthly payments throughout the life of the loan with a minimum monthly payment of $50.

The lower the payment amount, the slower you will repay the principal and the more interest you will pay; thereby, increasing your total debt over the life of the loan. Payment calculations are based on making on time monthly payments.

You may log in to evaluate different repayment plans that could help manage your student loans.

Changes to this plan may be requested by calling 888-866-4352 (Toll Free).

Graduated Repayment Plan

Payments start lower and will increase every two years.

The lower the payment amount, the slower you will repay the principal and the more interest you will pay; thereby, increasing your total debt over the life of the loan. Payment calculations are based on making on-time monthly payments.

You may log in to evaluate different repayment plans that could help manage your student loans.

Changes to this plan may be requested by calling 888-866-4352 (Toll Free).

Extended Repayment Plan

Extended repayment of your loan is available to borrowers with more than $30,000 in outstanding FFELP or Direct Loans and who took out their first loans after 10/7/1998. Proof is required if you have student loan debt that is not serviced by MOHELA.

The lower the payment amount, the slower you will repay the principal and the more interest you will pay; thereby, increasing your total debt over the life of the loan. Payment calculations are based on making on-time monthly payments.

You may log in to evaluate different repayment plans that could help manage your student loans.

Changes to this plan may be requested by calling 888-866-4352 (Toll Free).

We send notification via mail or Paperless E-Delivery depending on your designated correspondence preference.

A deferment is a temporary postponement of payment on a loan that is allowed under certain conditions and during which interest generally does not accrue on Direct Subsidized Loans, the subsidized portion of Direct Consolidation Loans, Subsidized Federal Stafford Loans, the subsidized portion of FFEL Consolidation Loans, and Federal Perkins Loans. All other federal student loans that are deferred will continue to accrue interest.

Additional eligibility criteria and requirements may apply. This list is not all-inclusive of available deferment types. To determine if you qualify, please call 888-866-4352 (Toll Free).

Deferments are an entitlement if you qualify. Interest continues to accrue on unsubsidized loans during periods of deferment. Unpaid accrued interest will capitalize (be added to your principal balance) at the end of a deferment. Time spent on a deferment does not count toward Public Service Loan Forgiveness. The only deferment where time counts toward IDR Forgiveness is an Economic Hardship Deferment. Therefore, some deferments may not be as helpful depending on your circumstances.

Forbearance is a temporary postponement of payment and should be requested as a last resort. Interest on both subsidized and unsubsidized loans remains the responsibility of the borrower.

Mandatory forbearances will be granted to eligible borrowers for any of the following reasons:

Additional eligibility criteria and requirements may apply. To determine if you qualify, please call 888-866-4352 (Toll Free).

Time spent on a forbearance may not count toward Public Service Loan Forgiveness or Income-Driven Repayment Forgiveness. In addition to this interest will accrue during your period of deferment or forbearance (except in the case of certain forbearances, such as the one offered as a result of the COVID-19 emergency). This means your balance will increase and you'll pay more over the life of your loan. MOHELA encourages you to take advantage of repayment plans which may benefit you more and help you on your path to repayment.

For assistance in determining the best repayment option for your circumstances, please visit StudentAid.gov  this link will open in a new window.

To tell how your last payment was applied, go to Account History on the sidebar navigation.

Your monthly bills also display how much of your payments made since the last billing statement was applied toward principal, interest and fees and what date the most recent payment was effective.

In most cases, this will be just one payment but if you made multiple partial payments since your last billing statement, the principal, interest and fees will be a total of all payments. Example: your amount due is $50 and you make five $10 payments in the month, the Total Payments Received Since Last Statement will include the entire $50, not just the last $10.

To target a payment toward a specific loan when making an additional or partial payment, submit your request via one of the following:

• Web - The quickest way to make payments to specific loans is to pay online by clicking Make a Payment in the navigation and then choose Specify for Each Loan which will allow you to target a specific loan while making a payment.

• Phone - Speak to a customer service representative at 888-866-4352 (Toll Free).

• Mail - Include specific instructions on how you want your payment applied. Include the amount, disbursement date, loan type and indicate this is a one-time payment instruction. Please log in or call for your payment address.

An overpayment, or "additional payment", is defined as any payment that is greater than the past due amount plus the current amount due.

Payments on federally-owned loans are first applied toward:

1. Past Due,

2. Current Due,

   1. Outstanding accrued interest, then

   2. Principal balance.

3. Overpayments are then applied to:

   1. Highest to lowest interest rate

   2. Unsubsidized, then subsidized

   3. If interest rate and subsidy are the same, payment prorates based on monthly payment amount

Past due amounts are satisfied first, followed by current due amounts. Payments made over the required amount will be applied to the highest interest rate loan first. If multiple loans exist at the same rate of interest, MOHELA will apply the overpayment to the unsubsidized loan first, then to the subsidized loan. If loans have the same interest rate and subsidy, the excess amount will be applied in proportion to those loans with a regular monthly payment.

Overpayments made to consolidated loans will automatically go to the unsubsidized portion of the consolidation.

Interest accrues daily based on your outstanding balance and the number of days between payments.

To target payments to one portion of a consolidation loan, see the One-Time Payment Instructions in the Payment Application and Allocation section below.

Extra through Auto Pay: You may set up or make changes to the additional recurring amount you want withdrawn using Auto Pay, and whether you want it to pay your account ahead. To do this select Auto Pay from the navigation to manage your Auto Pay.

Extra through Manual Payment:

• Web - The quickest way to pay extra is to pay online by clicking Make a Payment in the navigation and then choosing to Auto Allocate or Specify for Each Loan.

• Phone - Speak to a customer service representative at 888-866-4352 (Toll Free) or 636-532-0600 (for International) anytime 24/7

• Bank - Use your bank's online bill pay service

• Mail - Include specific instructions on how you want your payment applied. Include the amount, disbursement date, loan type and indicate this is a one-time payment instruction.

  
  
  
  Department of Education - MOHELA
  P.O. Box 790453
  St. Louis, MO 63179-0453
  

All payments for federally-owned loans must be drawn on U.S. financial institutions and in U.S. currency or TD Bank.

Please be assured, if you are enrolled in Auto Pay, your monthly payment withdrawal will continue as scheduled, regardless of any additional payments you make using the options above.

Select Profile from the navigation. From here you can update all of your contact information and sign up for Paperless E-Delivery.

To request to update your first, last, and/or middle name you will need to submit a secure message request and provide documentation of your legal name change. To do so, go to your Inbox and select Email Us from the links at the top of the page.

Navigate to your Profile and select to edit your Email Permissions.

Yes, signing up to Paperless E-Delivery means you will receive any letters, forms and other notifications like your monthly statement in your online inbox instead of receiving them by mail. You will also receive an email to your email address on file to notify you when you receive a paperless document.

Your paperless documents will be stored online for up to 12 months.

From time to time, we may have information or other correspondence which can only be sent to you by regular mail. Please note, if your USPS address becomes invalid, your selected Paperless E-Delivery options may be suspended, until a valid USPS address has been provided to MOHELA.

With the exception of documents we are required to send by regular mail, there could be a few reasons you received notification via paper instead of online.

Invalid Email Account: If we received a return mail receipt indicating your email address may be invalid and you may not be receiving your notifications, we will begin sending you paper notifications in addition to your emails so we are sure you get the information you need. Please go to your Profile to make sure your email address is correct.

Invalid USPS Address: If your USPS address becomes invalid, your selected Paperless E-Delivery options may be suspended, until a valid USPS address has been provided to MOHELA.

Delinquency: If your account is more than 60 days past due, we will send additional paper notifications advising you of your delinquency and the variety of options you have to bring your account current. Once your account is current, we will stop sending paper notifications.

1. Select Upload on the navigation bar.

2. Under Securely Upload Your Documents select the form type for upload and click Next.

3. Click Browse and select the form you wish to upload.

4. Click Upload File.

Online payment uses several methods to ensure that your information is secure.

• User Name and Password: Your User Name and Password are unique identifiers that only you know. As long as you don't share your user name and password with anyone, no one can view your bills or personal information.

• TLS: Online Payment uses TLS (Transport Layer Security) which ensures that your connection and information are secure from outside inspection.

• Encryption: Your bank account information is stored in an encrypted format.

• Automatic Sign Out: Our web site automatically signs you out of a session if you are inactive for 20 minutes.

Learn about MOHELA's Internet Privacy Policy.

Computer security experts advise that you may put your information at risk when you use a public computer for personal business. For maximum security, you should avoid using public computers when modifying your personal or banking information. Public computers include those in schools, libraries, internet cafes, etc.

Current and prospective borrowers are entitled to receive any student loan related communication or document in an accessible, alternative format. Borrowers interested in receiving student aid forms, student loan statements, notices, written communications, and publications in alternative formats should contact us directly at 888-866-4352 (Toll Free), securely message us on the Inbox page from the navigation, or by email at Grp.AltForm@mohela.studentaid.gov. MOHELA offers various alternative formats such as Braille, large print, audio CD, and digital navigable formats supported by computers and digital talking-book players, delivered through data CD, email, or other electronic means.

Secure Messaging is our convenient and secure online message system, accessed from the Inbox page, that lets you access your monthly statements and correspondence online once you log in. When a new message is delivered to your Messages inbox, we will send an email to the address on file for your account. Every email will include a link to log in. After logging in, you will be taken to your Messages inbox, where you can view your statements and other correspondence online.

If you are ready to pay off one or more of your student loans, congratulations!

Paying online is the quickest and easiest way to calculate and make your payment. To do this, go to Loan Details in the navigation and select the loan(s) you are intending to pay off. On this screen you will see Online and By U.S. Mail pay off amounts. The Online payoff amount includes your current balance, and any outstanding unpaid interest. By U.S. Mail includes your current balance, any outstanding unpaid interest, and additional interest that would accrue over the next 10 calendar days until the final payment would be received. There is no penalty for paying your loans off early.

After obtaining your Online pay off amount, the next step is to submit your payment.

To pay online - Select Make A Payment in the navigation and select Auto Allocate to pay off all of your loans, or Specify for Each Loan to pay off specific loans.

Note: If you post-date your payment additional interest may accrue beyond the Online pay off quote which could result in a leaving a remaining balance on your account.

To pay by phone - Contact customer service at 1-888-866-4352 or 636.532.0600 (for International) anytime 24/7.

To pay by mail - Mail your payment to MOHELA. Please include your 10-digit Account Number. Your payment address may be different based upon your specific account information. Please log in or call for your payment address. Note that this payment method takes the longest for your payment to process.

For Direct Loans and ED-Held FFELP loans, you should select: MOHELA – U.S. Dept of Education. For convenience, you may also pay online or by phone.

Please note: payments that are not sent to the correct address may be delayed to post to your account.

For convenience, you may also pay online or by phone.

Please note: payments that are not sent to the correct address may be delayed to post to your account.

You may pay by using any of the following methods:

• Auto Pay - Enroll in Auto Pay to have automatic payments electronically debited from your bank account. Learn more about Auto Pay.

• Web - Pay online by clicking Make a Payment in the navigation

• Phone - Call 888-866-4352 (Toll Free) or 636-532-0600 (for International) anytime 24/7

• Bank - Use your bank's online bill pay service

• Mail - Mail your payment to MOHELA. Please include your 10-digit Account Number. Your payment address may be different based upon your specific account information. Note that this payment method takes the longest for your payment to process.

  
  
  
  Department of Education - MOHELA
  P.O. Box 790453
  St. Louis, MO 63179-0453
  

All payments must be drawn on U.S. financial institutions and in U.S. currency.

Select Make A Payment in the navigation, then choose to Auto Allocate or Specify for Each Loan. From there you can provide the amount to pay, enter your bank account information or select a payment method you have previously saved, follow the directions and submit your payment.

To cancel scheduled payment online select Account Summary from the navigation and locate the Recent Payments section at the bottom of the page. Scheduled and pending payments will appear in this section. To cancel the payment, select the 'x' and select Yes to confirm that you want to cancel the payment. This must be done at least 24 hours in advance of the scheduled date.

To cancel Auto Pay select Auto Pay from the navigation to open the Manage Auto Pay window. From here you may change or cancel your Auto Pay. Your request must be submitted at least five business days in advance of your due date.

• Mail: 2-4 business days from receipt to post. However, the payment will be effective the date your payment is received.

• Online: 2-4 business days from the payment processing date to post. However, the payment will be effective the date your payment was scheduled.

• Phone: 2-4 business days from the payment processing date to post. However, the payment will be effective the date your payment was scheduled.

• Auto Pay: 2-4 business days from the scheduled due date to post. However, the payment will be effective the date your payment was scheduled.

Please note: If your due date falls on a holiday or weekend, payment withdrawal is generally delayed an additional 1 to 2 days. However, the payment will be effective the date your payment was scheduled.

If your account is past due, you will receive payment reminders until the account is current.

For online payments, once you select submit from the payment screen, you will receive a confirmation number for your payment. Your payment summary information will also be displayed for you to review and approve prior to the payment being scheduled. A courtesy confirmation email will also be sent to a valid email address on file.

Before posting, your payment will show as Pending in the Recent Payments section of the Account Summary page. Please allow 2-3 business days for the payment to be posted to your account. Once it posts, your payment will be visible on the Account History page.

Payments are accepted from Checking and Savings accounts. All payments must be drawn on U.S. financial institutions and in U.S. currency or TD Bank.

Navigate to your Profile from the navigation and scroll to the bottom. From here you can add, modify, and remove saved bank accounts.

To update or change your Auto Pay bank account information, select Auto Pay from the navigation to manage your Auto Pay and select the bank account to add, modify or remove the bank account(s) on file.

You will continue to receive your bills through your current method regardless of if you pay online. If you would like to receive your bill and other important MOHELA correspondence electronically instead of by regular mail, please sign up for Paperless E-Delivery by updating your email permissions on your Profile.

If you are enrolled in school at least half time at an eligible college or career school, you are not required to make payments on federal student loans. Any payments made toward your loan during this period are optional and will save you money down the road. Payments would reduce the total amount of interest owed when the account enters repayment.

You may pay by using any of the following methods:

• Pay online by clicking Make a Payment in the navigation

• Call 888-866-4352 (Toll Free) or 636-532-0600 (for International) anytime 24/7

• Use your bank's online bill pay service

• Mail your payment to MOHELA. Please include your 10-digit Account Number. Your payment address may be different based upon your specific account information. Note that this payment method takes the longest for your payment to process.

  
  
  
  Department of Education - MOHELA
  P.O. Box 790453
  St. Louis, MO 63179-0453
  

All payments for federally-owned loans must be drawn on U.S. financial institutions and in U.S. currency or TD Bank.

Online payment uses several methods to ensure that your information is secure.

• User Name and Password: User Name and Password: Your User Name and Password are unique identifiers that only you know. As long as you don't share your user name and password with anyone, no one can view your bills or personal information.

• TLS: Online Payment uses TLS (Transport Layer Security) which ensures that your connection and information are secure from outside inspection.

• Encryption: Your bank account information is stored in an encrypted format.

• Automatic Sign Out: Our web site automatically signs you out of a session if you are inactive for 20 minutes.

Computer security experts advise that you may put your information at risk when you use a public computer for personal business. For maximum security you should avoid using public computers when modifying your personal or banking information. Public computers include those in schools, libraries, internet cafes, etc.

If you provide instructions,

• MOHELA will apply the payment as you request unless it would cause one or more of your loans to become delinquent.

• If the application of your payment, based on standing payment instructions, would cause one or more loans to become delinquent, MOHELA will notify you that the payment can't be applied as you requested.

• MOHELA will store your payment instruction request regardless of whether it was for one payment or ongoing payments.

• We will notify you if at any time your payment instruction can't be followed as requested.

• MOHELA will use your most recent instructions if there is a discrepancy between multiple instructions received.

If no instructions are provided, MOHELA will apply payments in the following manner:

• Payments made matching the total amount due will be applied to the total amount due for each loan.

• Overpayments made to consolidated loans will automatically go to the unsubsidized portion of the consolidation.

• Payments made over the required amount will be applied to the highest interest rate loan first. If multiple loans exist at the same rate of interest, MOHELA will apply the overpayment to the unsubsidized loan first, then to the subsidized loan. If loans have the same interest rate and subsidy, the excess amount will be applied in proportion to those loans with a regular monthly payment.

• If loans have the same interest rate and subsidy, the excess amount will be applied in proportion to those loans with a regular monthly payment.

• Payments received during an in-school (more than 120 days after a disbursement), grace, deferment, and/or forbearance period are applied to future installments only if your new monthly payment has been disclosed.

Unless instructed otherwise, in most cases payments made within 120 days of when your Direct Loan was disbursed (sent to the school) are applied as a reduction in the "Original Principal". You do not have to pay interest or loan fees on the portion of your loan that is returned within the timeframe described. We will retroactively change your "Original Principal" and adjust any interest and loan fees that apply to the amount of the loan that is returned. The payment source for these payments will be shown as the "Refund" in the payment details of the Account History found in the navigation. These payments are made effective as of the loans' disbursement date. In addition, your "Original Principal" will be adjusted to reflect the amount originally disbursed less any amounts repaid in the first 120 days of the loan. Please note this excludes consolidation loans.

Paying Ahead means that your current payment has been satisfied and you have paid at least a portion of your future bill.

There is no maximum limit to the amount you can pay each month. Paying your account ahead of schedule offers many benefits such as:

• Decreasing your total interest cost

• Paying your loan off sooner

• No prepayment penalties

Each time you satisfy a bill due, we will automatically advance your next payment due date and your billing statement will indicate a payment is not required for that bill. You may still continue to make payments to decrease your total interest cost and pay your loan off sooner. You have the option to select if you want your due date to be advanced on your loans. To request that all payments made over your monthly payment amount be applied to your current bill and not advance your due date, please see Standing Payment Instructions for All Future Payments below.

For borrowers working toward Public Service Loan Forgiveness, please note that additional payments may not apply. For borrowers on an income-driven repayment (IDR) plan you may pay ahead, however your due date cannot be advanced beyond your annual income-driven repayment (IDR) anniversary date and the required number of monthly payments must be made to be eligible for forgiveness. Borrowers with $0 payments on an IDR Plan cannot pay ahead to advance their due date.

Auto Pay

Please keep in mind your Auto Pay will continue to withdraw your regular amount due each month plus any additional recurring amount you have requested. This occurs even if:

• Your monthly payment amount changes

• You made a payment since your last due date

• You made additional payments and are in a “paid ahead” status

You may set up or make changes to the additional recurring amount you want withdrawn using Auto Pay, and whether you want it to pay your account ahead. To do so select Auto Pay from the navigation and manage your Auto Pay.

Partial Payments

Payments less than the required monthly installment amount are applied using the Standard Payment Application. If you submit special payment instructions and select a payment amount that does not satisfy the total amount due, your account may become delinquent. We may report information about your account to consumer reporting agencies. Late payments, missed payments, or defaults on your account may be reflected on your credit report.

To request special payment instructions when making an additional or partial payment, submit your request via:

• Web - Select Make a Payment from the navigation and choose Specify for Each Loan.

• Phone - Contact customer service at 888-866-4352 (Toll Free) or submit your request via fax 1-866-222-7060 (Toll Free).

• Secure Message or Mail - Provide instructions for how to apply the payment. Include the amount, disbursement date, loan type and indicate this is a "one-time payment instruction".

  
  
  
  Department of Education - MOHELA
  P.O. Box 790453
  St. Louis, MO 63179-0453
  

To never pay loan(s) ahead when you make additional payments greater than the total amount due (See "Additional Payments & Paying Ahead"), or to provide instructions for how all ongoing payments should be applied, provide instructions for how to apply additional payment.

• Web - Go to your Profile from the navigation and select to Change your payment directions.

• Phone - Submit your request via fax 1-866-222-7060 (Toll Free).

• Secure Message or Mail - Provide instructions for how to apply the payment. Include the amount, disbursement date, loan type and indicate this is a "one-time payment instruction".

  
  
  
  Department of Education - MOHELA
  P.O. Box 790453
  St. Louis, MO 63179-0453
  

Select Account History in the navigation to view your payment history.

For transactions prior to system migration or for transactions on other servicers systems, full details may not be available online. Please contact us or submit your request online by secure message to obtain payment history not reflected in the Account History page.

Interest accrues (builds) daily on the unpaid principal balance. Calculate your daily interest accrual using the following:

• Principal Balance
  $25,000
  
  
• x Interest Rate
  6.8%
  
  
• ÷ Number of Days in a Year
  365
  
  
• = Daily Interest Accrual
  $4.66

The daily interest accrual is multiplied times the number of days between payments. If your next payment is due on March 25 and your last payment was made on February 25, your unpaid interest accrued for the March payment equals approximately $130.48 ($4.66/day * 28 days).

Interest capitalization occurs any time unpaid accrued interest is added to the outstanding principal balance of the loan. Capitalized interest means more expense – it increases your loan principal, increases your monthly payment amount under most repayment plans and causes you to pay more interest throughout the life of your loan.

Interest rates for Federal Student Loans are set by the government. Rates may vary depending on the type of loan and the date the loan was issued. Loans disbursed after 07/01/2006 have a fixed interest rate that is not subject to change. Loans disbursed between 07/01/1998 and 06/30/2006 have variable rates that are adjusted annually on July 1st. The interest rates for Consolidation loans are determined by the interest rates of the loans that were included in the consolidation.

Borrowers participating in the Auto Pay payment option may be eligible for an interest rate reduction of 0.25%.

Active duty military servicemembers may also qualify for a reduced interest rate under the Servicemembers Civil Relief Act (SCRA). Learn more about military benefits.

Variable interest rates are tied to an index and change annually if the index changes. The rates are based on the 91-Day T-Bill and 1-Year Constant Maturity Treasury Yield.

Variable interest rates are determined by federal law.

Variable interest rates are adjusted annually effective July 1.

When variable interest rates change, we are required to ensure that the loan is paid off at the agreed upon time per the Master Promissory Note. The new monthly payment is based off the amount of principal remaining, any outstanding interest accrued, the new interest rate and the number of months left to pay the loan off.