Federal Family Education Loan Program

Higher Education Loan Authority of the State of Missouri

U.S. student loan servicer

The Higher Education Loan Authority of the State of Missouri, aka the Missouri Higher Education Loan Authority or MOHELA, is among the largest holders and servicers of student loans nationwide. Headquartered in St. Louis, MOHELA’s mission is to “ease the burden of financing higher education in Missouri while providing exceptional student loan services.”

MOHELA is a student loan servicer that has been working with students and households since 1981. It is among the many 10 largest student loan servicers, alongside NookStone, FedLoan Servicing (PHEAA), Granite State (GSMR), Great Lakes Educational Loan Services, Inc., HESC/Edfinancial, Navient, Nelnet, and OSLA Servicing. One of MOHELA’s major roles is to assist debtors successfully handle their student loans.

Created in 1981 as a quasi-governmental entity, MOHELA participated within the Federal Family Education Loan Program (FFELP) for practically three many years. While absolutely supporting a portfolio of legacy student loans by means of FFELP, MOHELA accomplished steps to change into a contractor to service federal student loans. MOHELA obtained the primary not-for-profit (NFP) contract and started servicing student loans owned by the federal authorities beneath the U.S. Department of Education Federal Loan Program in October 2011.

MOHELA was created, partially, to assist students acquire low-cost training loans. By offering greater than $300 million in loan forgiveness, MOHELA has helped Missouri students attend Missouri faculties. To additional assist entry to increased training and ease increased training prices for Missouri households, MOHELA shaped the Missouri Scholarship Foundation, a tax-exempt nonprofit 501(c)(3) group.

More than 625 full-time MOHELA employees members work with the Department of Education, households, lenders, faculties and students servicing upwards of $39 billion in student loans. A second loan servicing heart opened in Columbia in 2013.

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History and construction[edit]

As a “public instrumentality and body politic and corporate of the state of Missouri,” MOHELA was created in 1981 by laws signed into legislation by Governor Christopher S. “Kit” Bond. MOHELA was established to “…assure that all eligible post-secondary education students have access to student loans” (RSMo 173.360). The “authority” is ruled by seven board members working on alternating five-year phrases; 5 of whom are appointed by the Governor of the state of Missouri, topic to the recommendation and consent of the Missouri Senate, and two others are representatives from the Missouri Coordinating Board of Higher Education – certainly one of which is a everlasting seat to be stuffed by that company’s commissioner.

Initial funding to ascertain operations got here from a $65 million bank letter of credit, assured by a number of of the then members, and was repaid following the issuance of bonds. Since that authentic concern, MOHELA has generated its personal funding from starting to current day. From its humble beginnings with fewer than ten staff, MOHELA has grown to greater than 625 full-time employees members and works with students, faculties and lenders in all 50 states.

Income and finance[edit]

MOHELA helps its mission and pays working prices completely from revenues derived from its personal operations. Net revenue from student loans is often between one cent to half a cent on each greenback on loans that MOHELA owns. A majority of MOHELA’s serviced portfolio earn a payment paid to MOHELA from the Department of Education.

National recognition[edit]

MOHELA was named an “Exceptional Performer” by the U.S. Department of Education. MOHELA maintained a compliance efficiency ranking of 97 % in changing federal student loans to compensation, accumulating delinquent loans, and submitting well timed claims with warranty companies. MOHELA leaders even have been elected to {industry} and group board and serve on quite a lot of industry-related committees.

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MOHELA turned the primary servicer within the not-for-profit (NFP) sector to obtain a contract and started servicing student loans owned by the federal authorities beneath the U.S. Department of Education Federal Loan Program in October 2011.

Student loan switch controversy[edit]

In the previous a number of years, MOHELA has change into a servicer for the federal authorities for student loans from all around the nation. Over 500,000 public student loan accounts have been transferred from the U.S. Department of Education and different servicers to MOHELA for dealing with. There have been many complaints from debtors about loan dealing with throughout and after the swap to MOHELA. Many debtors have complained of prices for late funds attributable to delayed processing of funds made to the Department of Education earlier than the switch, suspension of auto-payment packages, elevated fee quantities, elevated estimated compensation dates, adjustments to the borrower’s chosen compensation plan, undesirable forbearances and deferments, failure to course of types, and utilized or capitalized curiosity.[1][2]

Types of student loans owned and serviced by MOHELA[edit]

External hyperlinks[edit]

• Missouri Department of Higher Education
• U.S. Department of Education
• Federal Student Loan Servicers
• HCERA/SAFRA – Not-For-Profit (NFP) Servicer Program • Mohela Login


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