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.
In observance of Labor Day our offices will be closed on Monday, September 2. Please note, payments may take up to five business days to post to your account. This delay will not change the effective date of your payment.
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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 this link will open in a new window .
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.
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.
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 this link will open in a new window .
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.
For further information, including a comprehensive Q&A about Closed School Discharges, visit the Office of Federal Student Aid website this link will open in a new window .
Federal Student Aid (FSA) is your federal loan provider. FSA uses servicers (private companies) like MOHELA to manage billing, questions, and payments, and to help you enroll in the best repayment plan for you.
Learn more about Federal Student Aid this link will open in a new window
See your repayment options with Loan Simulator this link will open in a new window
Information about your student loans is reported to the four nationwide consumer reporting agencies. Based on the information provided, each individual consumer reporting agency uses their own unique scoring model to determine your FICO credit score.
These credit reporting practices apply to all student loans that are owned by the Department of Education.
We will begin to report a loan delinquent once it is 90 days or more past due on the last date of the month.
We report to the consumer reporting agencies (CRA's) monthly, with the status as of the last day of every month. Monthly reporting excludes loans that were previously reported in a final credit reporting status (for example, paid in full, transferred, etc.) and loans where credit reporting is bypassed or deleted. Please note the CRA's need time to update reporting once we have reported information to them.
We will report each individual loan to the consumer reporting agencies as one unique tradeline that will appear on your credit report.
We are not authorized to complete "goodwill requests" for credit updates, per the directive of Federal Student Aid.
For more information, visit mohela.studentaid.gov/credit.
Due to changes in PSLF regulations, you can now buy back certain months of your payment history to make them qualifying payments for PSLF. Specifically, you can buy back months that do not count as qualifying payments because you were in an ineligible deferment or forbearance status.
The buyback opportunity is only available if you already have 120 months of qualifying employment and buying back months in forbearance or deferment would result in forgiveness under PSLF or Temporary Expanded PSLF (TEPSLF). Please note: The PSLF program is managed by the U.S. Department of Education, not MOHELA. To learn more about next steps, and general information on the program, visit Studentaid.gov/PSLFbuyback.