Important Announcements

On Dec. 9, 2025, the U.S. Department of Education announced a proposed settlement agreement that would end the Saving on a Valuable Education (SAVE) Plan. The settlement must be approved by the court before it can be implemented. Borrowers can use the Loan Simulator to begin exploring other repayment options. For more information, visit StudentAid.gov/courtactions.

On Oct. 30, 2025, the U.S. Department of Education published final Public Service Loan Forgiveness (PSLF) program regulations that will be effective on July 1, 2026. We'll provide updates when the regulations are implemented. For now, there are no impacts to borrowers, payment counts, or discharges.

Visit StudentAid.gov/publicservice for more information about PSLF and current program requirements.

For more information about employer eligibility, visit StudentAid.gov/pslf/employer-search.

To apply for PSLF, use the PSLF Help Tool at StudentAid.gov/pslf.

Important Updates

PSLF and PSLF Buyback

The PSLF program is managed by the U.S. Department of Education not MOHELA. To learn more about your next steps, and general information on the programs, visit Studentaid.gov/PSLF or Studentaid.gov/PSLFbuyback.

SAVE (Saving On A Valuable Education)

On August 1, 2025, interest began accruing on the SAVE Administrative Forbearance. Visit StudentAid.gov/SAVE to learn more. You can leave the forbearance by switching to an eligible repayment plan using Loan Simulator.

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How Federal Student Loan Payment Processing Works

MOHELA's Role

MOHELA is your loan servicer, but we don't receive your payments directly. Instead, we're paid a small monthly fee to manage your account. Your payments are processed by vendors working with the U.S. Department of Education.

Who Handles What

  • Payments are sent to Federal Student Aid's (FSA) vendors, not MOHELA.

  • Refunds are initiated by MOHELA and processed by the U.S. Treasury.

  • Interest rates are set by Congress.

  • Repayment plans are determined by Congress or FSA.

Payment Flow: Mailed Payments and Payment Refunds

Payments

  1. You mail your payment to FSA Vendor who manages the P.O. Box

  2. FSA Vendor who manages the P.O. Box sends a data file to MOHELA

  3. MOHELA posts the payment to your account based on the data in the file

Refunds

  1. You request or MOHELA initiates, which sends the request to the U.S Treasury

  2. U.S. Treasury processes the refund request

  3. U.S. Treasury mails the refund to you