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What to expect from MOHELA student loan servicing

How to work with this federal loan servicer — and avoid common problems.

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Anna Serio
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The Missouri Higher Education Loan Authority (MOHELA) is a student loan servicer that works with both federal and private student loans — including popular refinancing companies like SoFi. It has relatively few complaints compared with other servicers out there. But keep an eye on your credit report if MOHELA handles your loans: Several borrowers say that errors hurt their credit score.

What repayment plans does MOHELA offer?

Because MOHELA is a federal student loan servicer, you will be able to choose from a variety of federal repayment plans, including income-driven repayment. The plan you qualify for will depend on your financial circumstances, and if you need to change things up or design something that better suits your needs, you can contact MOHELA by phone to discuss your options.

How repayments work with MOHELA

MOHELA offers several options when it comes to repayments. If it’s your first time and you plan on paying online or over the phone, have your bank account and routing number on hand — you’ll need it to transfer money from your account.

Can I pay off my loan early?

Yes, though payments are applied toward outstanding fees or interest before covering your principal balance.

The fastest way to make an additional repayment is online:

  1. Go to the MOHELA website and log in to your account.
  2. Select Pay Online.
  3. Click Pay a Different Amount, and choose how much you’d like to pay and which loans you’d like it to cover.
  4. Review your bank account information, the payment amount and the date before submitting your request.

You can make additional payments by mail or over the phone. Log in to your online account or call customer service to find out where to send additional repayments. Include a separate document with your account number explaining which loans you’d like the additional repayment distributed to.

How to contact customer service

You have several ways to get in touch with MOHELA’s customer service team, from talking on the phone to sending a secure online message.

How to refinance my MOHELA student loans

Refinancing your MOHELA student loans involves taking out a loan with a private lender to pay off your current student debt. Aside from potentially landing more favorable rates and terms, it’s the only way to change your servicer if you have private student loans. You’ll need to confirm that it’s not with a lender that also uses MOHELA as its servicer.

Federal loan holders might want to think twice about refinancing, however. Most private companies don’t offer the same benefits you can find with federal loans, such as income-driven repayment plans and forgiveness programs. If you want to change your servicer, consider applying for a federal Direct Consolidation Loan, which also allows you to choose the company that services your loan.

Don’t refinance with SoFi or ELFI if you want to change your servicer. Both use MOHELA.

Compare student loan refinancing options

Data updated regularly
Name Product APR Min. Credit Score Loan amount Loan Term
Purefy Student Loan Refinancing (Variable Rate)
Purefy Student Loan Refinancing (Variable Rate)
1.88% to 5.54%
650
$5,000 - $300,000
5 to 20 years
Refinance all types of student loans — including federal and parent PLUS loans.
Get started
More Info
Credible Student Loan Refinancing
Credible Student Loan Refinancing
1.90% to 8.90%
Good to excellent credit
Starting at $5,000
5 to 20 years
Get prequalified offers from top student loan refinancing providers in one place.
Get started
More Info
SoFi Student Loan Refinancing Variable Rate (with Autopay)
SoFi Student Loan Refinancing Variable Rate (with Autopay)
2.25% to 6.39%
650
Starting at $5,000
5 to 20 years
A leader in student loan refinancing, SoFi can help you refinance your loans and pay them off sooner.
Get started
More Info
Splash Financial Student Loan Refinancing
Splash Financial Student Loan Refinancing
1.89% to 6.66%
650
Starting at $7,500
5 to 25 years
Save on your student loans with this market-leading newcomer.
Get started
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Education Loan Finance Student Loan Refinancing
Education Loan Finance Student Loan Refinancing
2.39% to 6.01%
680
Starting at $15,000
5 to 20 years
Lower your student debt costs with manageable payments, affordable rates and flexible terms.
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Earnest Student Loan Refinancing
Earnest Student Loan Refinancing
1.88% to 5.64% APR with autopay
650
$5,000 - $500,000
5 to 20 years
Get a tailored interest rate and repayment plan with no hidden fees.
Get started
More Info
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Compare up to 4 providers

How to avoid common problems with MOHELA

Though MOHELA doesn’t earn as many complaints as competing servicers, borrowers say they’ve run into issues with the company. As of January 2019, more than 200 people have filed complaints with the Consumer Financial Protection Bureau (CFPB).

And while MOHELA earns an A+ from the Better Business Bureau (BBB), it earns a low 1-star rating based on 19 reviews. On top of this, 65 customers have filed a complaint with the BBB.

Borrowers complain about two common problems you’ll want to stay on top of.

Inaccurate information on credit report

A top complaint against MOHELA is that it sometimes provides inaccurate information to credit bureaus, causing borrowers’ credit scores to drop. Some say late payments showed up on their credit report when they’d paid on time or were in deferment. Others claim a loan showed on their report after they’d paid it off.

Trouble putting repayments on hold

Some borrowers say they had trouble with MOHELA when it came to deferment or forbearance. Several claim that MOHELA reported them as delinquent after they were approved to hold off on or make reduced repayments. Many also claim it was hard getting through to MOHELA to correct the error.

  • How to avoid it: If you apply for deferment or forbearance, reach out to MOHELA before you change your repayment schedule. After you stop repayments or start reduced repayments, keep tabs on your credit report and reach out to MOHELA if your repayments are reported as late.

How do I submit a complaint?

Although MOHELA doesn’t have a unique complaint form, there are still ways you can address any issues or problems with MOHELA. The first — and likely most efficient — is calling or emailing MOHELA’s customer service team. While there have been a quite few complaints listed on its BBB page that state its customer service leaves a lot to be desired, this is the best place to start when you need help.

And if that doesn’t work, you can file your own complaint with the BBB. You can also take advantage of the CFPB’s complaint form if MOHELA fails to meet your needs.

What to expect with other student loan servicers

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Bottom line

MOHELA’s website is relatively easy to use, offering a lot of basic information. But the company doesn’t have the best track record when it comes to reporting repayments to credit bureaus — especially if you apply for deferment or forbearance.

Learn more about how student loans work to borrow smart and affordably for your education.

Frequently asked questions

Learn more about MOHELA with these answers to common questions.

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