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☆ The Education Department will transfer some student loan borrowers to a different servicer. Here's what you need to know
▼ + stars: | 2024-05-02 | by ( Annie Nova | ) www.cnbc.com time to read: +1 min

J. David Ake | Getty ImagesIf your current federal student loan servicer is Mohela, or the Missouri Higher Education Loan Authority, the U.S. Department of Education said it will soon transfer some student loan borrowers to different servicers. Change impacts Mohela borrowersThe Education Department began transferring a portion of Mohela's borrowers this week to different companies, it said in an April 29 blog post. "A different servicer will begin managing these loans and assisting these borrowers," the department said. The Education Department contracts with different companies to service its federal student loans, including Mohela, Nelnet and EdFinancial. Why the transfer is happeningWhat borrowers should do amid transitionBorrowers who are being transferred to a different servicer should receive alerts from Mohela and their new servicer, the Education Dept.

Persons: David Ake, servicer, Mark Kantrowitz Organizations: US Department of Education, Missouri Higher Education Loan Authority, U.S . Department of Education, Education Department, The Education Locations: Washington ,, Missouri, Mohela

☆ Her student loan bill was supposed to be $0. Then $2,074 was taken from her account
▼ + stars: | 2023-11-01 | by ( Annie Nova | ) www.cnbc.com time to read: +1 min

Morgan Lindsay didn't mind that student loan bills were resuming in the fall. She'd applied for a new repayment plan over the summer, and her calculated monthly bill came to $0. But then, on Sept. 11, she found that her servicer, Mohela, or the Missouri Higher Education Loan Authority, had taken $2,074 from her bank account. More from Personal Finance:Will Social Security be there for me when I retire? Medicare open enrollment may cut retiree's health-care costsHow much your Social Security check may be in 2024But under the income-driven repayment plan she'd signed up for, she didn't owe anything.

Persons: Morgan Lindsay, She'd, Lindsay, she'd, Mohela Organizations: Missouri Higher Education Loan Authority, Finance, Will Locations: Missouri

☆ Student Loan Processor Mohela Punished for Millions of Late Billing Notices
▼ + stars: | 2023-10-30 | by ( Gabriel T. Rubin | ) www.wsj.com time to read: 1 min

The Education Department said that around 2.5 million borrowers didn’t receive billing statements from Mohela according to schedule. Photo: Ting Shen for The Wall Street JournalThe Education Department will withhold a $7.2 million monthly payment for a major student loan processor because it failed to send out timely billing notices to millions of borrowers. The Monday move against Mohela, the Missouri Higher Education Loan Authority, comes as the government and the contractors who handle the billing and repayment program enrollment for federal student loans struggle with returning 28 million borrowers to repayment after a more than three-year pandemic-era pause.

Persons: Ting Shen Organizations: Education Department, Wall Street, Mohela, Missouri Higher Education Loan Authority Locations: Missouri

☆ Education Department penalizes Missouri lender for error that made 800,000 student loan borrowers delinquent
▼ + stars: | 2023-10-30 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

The U.S. Department of Education will penalize student loan servicer Mohela, or the Missouri Higher Education Loan Authority, for its failure to send timely billing statements to 2.5 million borrowers. As a result of Mohela's errors, more than 800,000 borrowers were delinquent on their loans, the Education Department said in a statement Monday. Higher education expert Mark Kantrowitz said he believed this was one of the first instances of the government withholding payment from a student loan servicer. "It is only fair for the loan servicer to be penalized for mailing late statements." Federal student loan payments were on pause since March 2020, due to the Covid pandemic, but resumed this month.

Persons: servicer Mohela, Rich Cordray, Mark Kantrowitz, servicer, Kantrowitz, Mohela, servicers, Sen, Elizabeth Warren, Braxton Brewington, Brewington, Biden Organizations: U.S . Department of Education, Washington , D.C, U.S . Department, Education, Missouri Higher Education Loan Authority, Education Department, Finance, Federal, Mohela, CNBC Locations: Washington ,, Missouri, forbearance

Olivier Douliery | Afp | Getty ImagesAmberlee McGaughey, a librarian in Pennsylvania, was not worried about the restart of student loan payments. In August, she applied for the Public Service Loan Forgiveness program with her loan servicer, MOHELA, or the Missouri Higher Education Loan Authority. Around 7% of student loan borrowers are now more than $100,000 in debt. "The government has made all these announcements, and it's really confusing to people," said Scott Buchanan, executive director of the Student Loan Servicing Alliance, a trade group for federal student loan servicers. Her original student loan bill of $483, which was listed as due on Oct. 20, wasn't affordable for her.

Persons: Miguel Cardona, Kamala Harris, Olivier Douliery, she's, MOHELA, couldn't, Ella Azoulay, Carolina Rodriguez, Rodriguez, Scott Buchanan, Joe Biden, he'd, didn't, Biden, servicers, Braxton Brewington, Sarah Cluff, Sarah Cluff Still, servicer, Cluff, Sen, Elizabeth Warren, Nelnet, Joe Popevis, NelNet, Popevis, Servicers, Brewington, Amberlee, Jane Fox, Fox, Buchanan, Rocky, they'll Organizations: Washington , D.C, Afp, Getty, Public, Missouri Higher Education Loan Authority, CNBC, Finance, Biden, Student, Protection, Carolina, Education, Consumer, Student Loan, Alliance, U.S . Department of Education, Valuable Education, Education Department, MOHELA, SAVE, Legal, Association of Legal Locations: Washington ,, Pennsylvania, Missouri, U.S, New York, servicers

☆ The very first step to take if you're overwhelmed by paying back your student loans: 'We have to take control,' CFP says
▼ + stars: | 2023-10-19 | by ( Kamaron Mcnair | In Kamaronmcnair | ) www.cnbc.com time to read: +3 min

Federal student loan borrowers had payments due on their loans this October for the first time in over three years. "We have to take control over our student loans," Boneparth said. Here's the first step to take if you're overwhelmed by paying back your student loans, and where to go from there. Federal student loans can be confusing because you take the loan out from the government, not a specific bank or private lender. But once the loan is disbursed, you're assigned one of several federal loan servicers.

Persons: We've, Douglas Boneparth, CNBC's Frank Holland, Boneparth, you've Organizations: Bone, CNBC, servicers, Department of Education, Nelnet , Missouri Higher Education Loan Authority, Federal, Aid Locations: Nelnet , Missouri

☆ Student loan payments restart in October — here are changes borrowers can expect
▼ + stars: | 2023-08-31 | by ( Annie Nova | ) www.cnbc.com time to read: +4 min

A new servicer, for someMillions of federal student loan borrowers will have a different servicer when payments resume in October. Impacted borrowers should get emails about the change, said Scott Buchanan, executive director of the Student Loan Servicing Alliance, a trade group for federal student loan servicers. Borrowers previously with FedLoan should be transferred to MOHELA, or the Missouri Higher Education Loan Authority, he said. Another repayment optionFederal student loan borrowers can now sign up for the Biden administration's new loan repayment plan, and they could be enrolled in it by the time the bills resume. If your student loan servicer can't process your application for the SAVE plan by the time payments resume, it should place you in a temporary forbearance.

Persons: Julia Amaral, they'll, Granite State —, Scott Buchanan, Buchanan, FAFSA, Mark Kantrowitz, Kantrowitz, servicer, Biden, they're, Joe Biden Organizations: Istock, Pennsylvania Higher Education Assistance Agency, Student Loan, Alliance, Finance, Missouri Higher Education Loan Authority, EdFinancial Services, Lakes Higher, Federal Services, Biden, Valuable Education, Public, Education Department Locations: That's, Pennsylvania, Granite State, MOHELA, Missouri, StudentAid.gov

☆ It should be easier now for student borrowers to apply for public service loan forgiveness. Here's why
▼ + stars: | 2023-08-28 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

Drazen Zigic | Istock | Getty ImagesNavigating the Public Service Loan Forgiveness Program has been famously difficult. Fortunately, student loan borrowers may find that the process is getting a little easier. watch nowOnce the process is complete, the form should automatically be delivered to the Missouri Higher Education Loan Authority (MOHELA). That's the student loan servicer that currently handles PSLF borrowers (previously FedLoan did so). Try to fill out this form at least once a year, Kantrowitz added, and keep records of your confirmed qualifying payments.

Persons: Drazen Zigic, Mark Kantrowitz, George W, Bush, you've, servicer, Kantrowitz Organizations: Istock, Getty, Public, U.S . Department of Education, Consumer Financial, Bureau, Missouri Higher Education Loan Authority, Education Department Locations: Missouri

☆ When student loan payments restart, many borrowers may have a different servicer
▼ + stars: | 2023-08-21 | by ( Annie Nova | ) www.cnbc.com time to read: +1 min

Mementojpeg | Moment | Getty ImagesLook out for notices about the changeScott Buchanan, executive director of the Student Loan Servicing Alliance, a trade group for federal student loan servicers, said impacted borrowers should get emails about the change. Higher education expert Mark Kantrowitz has been tracking the transfers. Borrowers previously with FedLoan should be transferred to MOHELA, or the Missouri Higher Education Loan Authority, he said. Accounts with Great Lakes Higher Education, Kantrowitz said, should be managed by Nelnet going forward. Also, Kantrowitz said, "whenever there is a change of loan servicer, there can be problems transferring borrower data."

Persons: Scott Buchanan, servicers, Buchanan, Mark Kantrowitz, Kantrowitz, You'll Organizations: Student Loan, Alliance, Missouri Higher Education Loan Authority, EdFinancial Services, Lakes Higher, Federal Services Locations: MOHELA, Missouri, Granite State, StudentAid.gov

☆ 2 big takeaways from the Supreme Court ruling on Biden's student loan forgiveness plan
▼ + stars: | 2023-07-16 | by ( Annie Nova | ) www.cnbc.com time to read: +4 min

Supreme Court justices listen to arguments. U.S. Supreme Court Chief Justice John G. Roberts poses during a group portrait at the Supreme Court in Washington, U.S., October 7, 2022. They pointed out that the lender's revenue was actually expected to rise because of some student loan servicers recently leaving the space and it picking up extra accounts. "I was surprised the court found Missouri had standing," said higher education expert Mark Kantrowitz. That law was passed in the aftermath of the 9/11 terrorist attacks, and grants the president broad power to revise student loan programs during national emergencies.

Persons: Bill Hennessey, Joe Biden's, John Roberts, Roberts, John G, Evelyn Hockstein, servicers, Mark Kantrowitz, Luke Herrine, Antonin Scalia, Herrine, Elena Kagan, Kagan Organizations: Biden, Finance, GOP, Missouri Higher Education Loan Authority, Supreme, Reuters, University of Alabama, Liberal, U.S . Department of Education Locations: — Arkansas, Iowa , Kansas , Missouri , Nebraska, South Carolina, . Nebraska, Missouri, Washington , U.S, delinquencies

☆ A student-loan company that services millions of borrowers played a big role in defeating Biden's debt cancellation plan
▼ + stars: | 2023-06-30 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

The Supreme Court struck down Biden's student-loan forgiveness plan by a 6-3 vote. The majority said the six GOP-led states had standing to involve student-loan company MOHELA in its lawsuit against the plan. Chief Justice John Roberts wrote in the majority opinion that "the plan's harm to MOHELA is also a harm to Missouri." At the time, she asked the lawyer representing the states: "Why didn't the state just make MOHELA come then?" The majority didn't see it that way — and Biden's broad student-debt relief plan is effectively blocked.

Persons: MOHELA, —, Joe Biden's, Brown, — Biden, . Nebraska —, John Roberts, Roberts, Cori Bush, Amy Coney Barrett, You've, Liberal Justice Elana Kagan, Kagan, SCOTUS, Rep, Alexandria Ocasio, Cortez Organizations: GOP, MOHELA, Service, US Department of Education, . Nebraska, Republican, State, Missouri Rep, Student, Liberal, Missouri Higher Education Loan Authority, Higher, Democratic, Twitter Locations: ., Missouri, Alexandria

☆ Here are key things to know as Supreme Court nears decision on Biden's student loan forgiveness
▼ + stars: | 2023-06-16 | by ( Annie Nova | ) www.cnbc.com time to read: +5 min

The United States Supreme Court Building Geoff Livingston | Moment | Getty Images1. You'll be able to read the ruling on the Supreme Court's website, likely some time in the morning of decision day. A top Education Department official recently warned that resuming student loan bills without Biden's loan cancellation could trigger a historic rise in delinquencies and defaults. They said the decreased revenue for MOHELA, or the Missouri Higher Education Loan Authority, could leave the agency unable to meet its financial obligations to Missouri. Student loan borrowers gathered outside the U.S. Supreme Court on Feb. 27, 2023, the night before the court hears two cases on student loan forgiveness.

Persons: Geoff Livingston, Mark Kantrowitz, Kantrowitz, You'll, Biden, Elizabeth Prelogar, Prelogar, they'd, Mark, servicers, Amy Coney Barrett, James A, Campbell, Barrett wasn't, you've, Annie Nova Organizations: United States Supreme, Supreme, Department, Republican, GOP, South Carolina –, Job, Network Foundation, Missouri Higher Education Loan Authority, CNBC, U.S Locations: delinquencies, — Arkansas, Iowa , Kansas , Missouri , Nebraska, South Carolina, Missouri, Nebraska

☆ Millions of student loan borrowers will have a new servicer when payments restart
▼ + stars: | 2023-06-12 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

Borrowers who are being transferred to a different servicer should receive alerts via email, said Scott Buchanan, executive director of the Student Loan Servicing Alliance, a trade group for federal student loan servicers. These notices will explain any steps you'll need to take, he said, and include information on your new servicer. watch nowBorrowers previously with FedLoan should be transferred to MOHELA, or the Missouri Higher Education Loan Authority, he said. Borrowers can check who their new servicer is by logging in to StudentAid.gov., Kantrowitz said. Also, Kantrowitz said, "whenever there is a change of loan servicer, there can be problems transferring borrower data.

Persons: Berk, Scott Buchanan, Kantrowitz, Buchanan, You'll Organizations: Istock, Student Loan, Alliance, Missouri Higher Education Loan Authority, EdFinancial Services, Lakes Higher, Federal Services Locations: MOHELA, Missouri, Granite State, StudentAid.gov

☆ Meet a 64-year-old therapist who's been making student-loan payments for decades while working in public service — but still hasn't gotten loan forgiveness
▼ + stars: | 2023-04-30 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +7 min

Greg Ogden, 64, said he's been paying off his student loans since 1994 while working in public service. He said he applied for Public Service Loan Forgiveness but paperwork errors have kept him in repayment. Now, he said he owes about $25,000 in student debt, and he's frustrated it's still hanging over his head at this point in his life. "I want to fulfill my obligations, but I would like them to honor the payments that I've made," Ogden said. Do you have a story to share about your student debt?

☆ Supreme Court's decision on Biden's student loan forgiveness plan may hinge on Justice Amy Coney Barrett
▼ + stars: | 2023-03-08 | by ( Annie Nova | ) www.cnbc.com time to read: +1 min

The fate of the Biden administration's sweeping plan to cancel $400 billion in student loan debt for tens of millions of Americans may hinge on the newest conservative member of the Supreme Court: Justice Amy Coney Barrett. Barrett was the conservative justice who seemed the most unconvinced by the plaintiffs challenging student loan forgiveness, said Jed Shugerman, a law professor at Fordham University. Specifically, Shugerman said, Barrett didn't seem to agree that they'd proven they have standing to sue. "Barrett was vocally and deeply uncomfortable about ruling that any of the plaintiffs had standing," Shugerman said. More from Personal Finance:Why Social Security retirement age, payroll tax may changeExperts argue Social Security retirement age shouldn't pass 67Return on waiting to claim Social Security is 'huge'As a rule, plaintiffs must prove that a policy would cause them injury in order to challenge it in the courts.

☆ Will student loan forgiveness pass the Supreme Court? Here's what we know so far
▼ + stars: | 2023-03-02 | by ( Kamaron Mcnair | ) www.cnbc.com time to read: +7 min

WASHINGTON, DC - People rally in support of the Biden administration's student debt relief plan in front of the the U.S. Supreme Court on February 28, 2023 in Washington, DC. This week, the Supreme Court heard oral arguments from both supporters and opponents of President Joe Biden's student debt forgiveness plan. Student loan borrowers have the most immediately at stake, but the high court's ruling and rationale could have bigger implications for the government. Nebraska solicitor general, James Campbell, who represented the state plaintiffs, responded that "the state speaks for MOHELA." Will student loan forgiveness pass?

☆ Biden's student loan forgiveness plan is 'unlawful,' two professors say, but legal challenges carry 'dangerous implications'
▼ + stars: | 2023-01-12 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

Although they call President Joe Biden's student loan forgiveness plan "unlawful," two university law professors are urging the Supreme Court to reject the legal challenges that have been brought against it. The Supreme Court has agreed to hear two of those legal challenges. The law professors say it's supposed to be the party most affected by a policy that challenges it in the courts. But the law professors say that, in that case, MOHELA should have brought the legal challenge, not the states. "Missouri is not the proper party to pursue relief for MOHELA's lost loan servicing fees," Baude and Bray wrote.

WASHINGTON, Jan 4 (Reuters) - The U.S. Justice Department late on Wednesday filed a brief with the Supreme Court defending President Joe Biden's plan to cancel billions of dollars in federal student loans, arguing that two cases lacked standing to challenge the debt relief. Biden in August said the U.S. government would forgive up to $10,000 in student loan debt for borrowers making less than $125,000 a year, or $250,000 for married couples. Students who received Pell Grants to benefit lower-income college students would have up to $20,000 of their debt canceled under the plan. In fact, the Justice Department said, the HEROES Act expressly exempted the department from notice and comment procedures. Over 16 million borrowers have already been approved for debt relief and millions more have applied.

In the past two months, student loan forgiveness has been the target of two high-profile lawsuits. Meanwhile, the Biden administration responded by extending the student loan payment pause yet again. What's happening to student loan forgiveness? Since the status of student loan forgiveness remains in the air, the Biden administration has extended the student loan payment pause until the Supreme Court makes a ruling. Select ranked SoFi Student Loan Refinancing and Earnest Student Loan Refinancing as some of the best companies for refinancing student loans.

U.S. President Joe Biden delivers remarks regarding student loan debt forgiveness in the Roosevelt Room of the White House on Wednesday August 24, 2022. The Biden administration said in a new court filing Thursday that it will ask the Supreme Court to lift an injunction and allow a major student loan debt relief program to resume. Earlier Thursday, the Biden administration revealed updated guidelines that will make it easier for those struggling with their student debt to discharge it in bankruptcy. "Amidst efforts to block our debt relief program, we are not standing down." "This belief may well stop them from making payments even if the Department is prevented from effectuating debt relief," he wrote.

☆ Biden’s Student Loan Cancellation Loses Again
▼ + stars: | 2022-11-15 | by ( The Editorial Board | ) www.wsj.com time to read: 1 min

Things aren’t going well for President Biden’s student loan cancellation. On Monday the Eighth Circuit Court of Appeals enjoined the $400 billion write-off, its second legal defeat in days. This is what happens when the President subverts the law for election politics. The appellate court’s unsigned opinion focuses on the threshold question of whether Missouri suffered a concrete and particular injury to sue. Missouri argued that the loan cancellation would cost its student loan servicer, Missouri Higher Education Loan Authority (Mohela), revenue and impose administrative burdens.

The injunction will put the program on hold pending an appeal of a lower court ruling that had allowed the debt relief program to go forward. The Biden administration could ask the Supreme Court to lift the injunction. "The injunction will remain in effect until further order of this court or the Supreme Court of the United States," a three-judge panel of the appeals court said in its ruling. Monday's decision by the appeals court came after six GOP-led states argued in a lawsuit that the loan relief program threatens their future tax revenues, and that the plan circumvents congressional authority. The ruling by 8th Circuit Court of Appeals in St. Louis is the latest in a series of legal challenges to President Joe Biden's plan to cancel up to $20,000 in student debt for millions of Americans.

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