Important Announcement

The U.S. Department of Education is reviewing the recent Executive Order regarding the Public Service Loan Forgiveness Program. The Program is not changing today, and borrowers do not need to take any action. To learn more about the current program requirements, see your progress and payment counts, or submit a PSLF form, visit StudentAid.gov/publicservice.

A federal court issued an injunction preventing the U.S. Department of Education from implementing the Saving on a Valuable Education (SAVE) Plan and parts of other income-driven repayment (IDR) plans.

Income Driven Repayment (IDR) Status - As Directed by Federal Student Aid

Status of IDR Applications – No Action Required from You.

IDR esign is now available for submission on StudentAid.gov but still cannot be processed.
Pending IDR applications cannot be processed.
Forbearances are automatically being placed for borrowers on the SAVE Repayment Plan through 7/31/2025. Borrowers that have a pending IDR application may also be placed on a forbearance until no later than 7/31/2025.
Visit StudentAid.gov/Save-Action for more information or log in to check your loan status information.

Extending IDR Recertification of Family Size and Income (Anniversary Dates) – No Action Required from You.

Recertification of IDR plans will not be required until at least February 2026.
SAVE plan recertification dates were already extended.
Income Based Repayment (IBR), Pay As You Earn (PAYE), and Income Contingent Repayment (ICR) plans are in the process of being extended. Please allow a few weeks for this extension to occur. We will notify borrowers when this is complete.

Changing Your IDR Plan

You can choose to exit your IDR plan and move into a fixed payment repayment plan. Moving between IDR plans is not currently available as processing is still paused, but you can apply for an IDR plan online. Please visit StudentAid.gov/loan-simulator to review your options.

If you're having trouble making payments, please visit StudentAid.gov/loan-simulator to review your options. You can download a forbearance or deferment form, from StudentAid.gov/forms, and upload the form to your online MOHELA account.

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Official Servicer of Federal Student Aid

Important Announcements Contact Us

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Closed School Discharge

Alert

On Aug. 7, 2023, a federal court delayed the effective date of the latest regulations governing borrower defense and closed school loan discharges. Borrowers may still apply for a closed school discharge. As of March 1, 2024 we will begin to process applications received on or after July 1, 2023, using earlier rules.

Note: Borrowers approved for discharge only under the new regulations will receive a forbearance that will end 60 days after the litigation is resolved. See Closed School Discharge | Federal Student Aid for updates .

In certain instances, the closure of your school may result in a discharge, or release of your obligation to repay your student loan. Here's what you need to know.

You are eligible for a discharge if:

Your school closes while you are enrolled and you're unable to complete your program as a result. Note that if you were on an approved leave of absence at the time of the closure, you are considered to have been enrolled.
Your school closes within 180 days after you withdraw.

You are not eligible for a discharge if:

You withdraw more than 180 days before the school closes.
You are completing a comparable educational program at another school (through a teach-out agreement, a transfer or any other comparable means).
You have completed all the coursework for the program, even if you have not received a degree, diploma or certificate.

How to apply for a Closed School Discharge

If the school you attended recently closed and you believe you may be eligible for a closed school discharge, please contact MOHELA to learn about the Closed School Discharge application process.

Tax Implications if Your Loans are Discharged

As a result of a change in tax law, the Internal Revenue Service (IRS) has determined that loan balances that are discharged due to Death are not considered income for federal tax purposes if the discharge occurs during the period from January 1, 2018, through December 31, 2025.

If you receive a Form 1099-C, you should keep the form with the borrower's records, but you do not need to include it when filing the borrower's federal tax return. For additional information, visit irs.gov .

The discharged loan amount may be considered income for state tax purposes. You may want to consult with the state tax office or a tax professional before you file the borrower's state tax return.

Additional Information

For further information, including a comprehensive Q&A about Closed School Discharges, visit the Office of Federal Student Aid website .