Quick answer: MOHELA (the Missouri Higher Education Loan Authority) is one of the companies the U.S. Department of Education pays to manage federal student loans. It doesn’t own your loans or set the rules, but it sends your bills, processes your payments, and handles your repayment plan paperwork. In 2026, the biggest issue for MOHELA borrowers is the end of the SAVE plan. Borrowers who were in SAVE forbearance are getting 90-day notices to pick a new plan. If you don’t choose one, you’ll be placed in a Standard plan, which can mean a much higher payment. Your main options are the new Repayment Assistance Plan (RAP), which launched July 1, 2026, or Income-Based Repayment (IBR). Signing up for autopay by December 31, 2026, gets you a 1% interest rate cut through June 30, 2028. MOHELA has also faced a lawsuit and a Senate inquiry over servicing errors, including false past-due notices sent in August 2026, so check your account against StudentAid.gov and keep records of everything.
If you’ve logged into your MOHELA account lately and felt confused, you’re not alone. Federal student loans are going through the biggest overhaul in decades, and MOHELA, one of the largest servicers, is in the middle of it. This guide to MOHELA student loans explains who MOHELA is, what’s changing in 2026, how to choose a new repayment plan, and how to protect yourself from the servicing errors borrowers have been reporting.
What is MOHELA?
MOHELA is a nonprofit loan authority created by the state of Missouri. For federal student loans, it works as a loan servicer, a contractor hired by the Department of Education to handle the day-to-day work on borrowers’ accounts.
That distinction matters:
- The Department of Education owns your federal loans and sets the rules for interest rates, repayment plans, and forgiveness.
- MOHELA services them. It sends bills, collects payments, processes repayment plan applications, applies forbearances, and tracks progress toward forgiveness programs like Public Service Loan Forgiveness (PSLF).
MOHELA grew into one of the largest federal servicers after taking over millions of accounts from other servicers, including the PSLF portfolio from FedLoan Servicing. In 2025, the Education Department began spreading PSLF-eligible accounts across all of its servicers rather than keeping them concentrated at MOHELA, so some borrowers have been transferred elsewhere.
MOHELA also services some older FFEL program loans and certain private and state-based loans. The rules in this guide apply to federal Direct Loans.
Is MOHELA my student loan servicer?
The fastest way to check is to log in to StudentAid.gov, go to your dashboard, and look at “My Loan Servicers.” You’ll also see MOHELA’s name on any billing statement or email about your loans. If your loans were recently transferred, you should receive a notice from both your old and new servicer.
How to log in, pay, and contact MOHELA
| What you need | Where to go |
|---|---|
| Log in and manage your federal loans | mohela.studentaid.gov |
| Customer service phone | 888-866-4352 |
| Check which servicer you have and your official loan details | StudentAid.gov dashboard |
| Apply for or change an income-driven repayment plan | StudentAid.gov/idr |
| Estimate payments under different plans | Loan Simulator on StudentAid.gov |
Because phone wait times can be long, especially during deadline periods, doing as much as possible online and saving confirmation screens is your best bet.
What’s changing for MOHELA borrowers in 2026
The SAVE plan has ended
The SAVE plan, the income-driven repayment plan created under the Biden administration, was tied up in court for nearly two years. In 2026, the Education Department finalized a settlement that effectively ended it. Millions of borrowers who were sitting in a SAVE-related forbearance, often with a $0 payment, now have to move to a different plan.
Your 90-day notice
Starting July 1, 2026, servicers began sending SAVE borrowers notices giving them 90 days to choose a new repayment plan. MOHELA has been sending them in waves and told borrowers to expect them between July and October 2026. If you don’t act by your deadline, you’ll be placed in the Standard Repayment Plan (10-year fixed payments) or the Tiered Standard Plan, depending on when your loans were disbursed. Either could mean a much higher monthly bill and lost progress toward income-driven forgiveness.
Two things to know:
- Deadlines have shifted. In late September, borrowers across several servicers reported that their 90-day deadlines had been pushed back by two to four weeks, without a public announcement from the Education Department. Some borrowers still hadn’t received their notice. Check your own deadline in your MOHELA account rather than assuming.
- You don’t have to wait for the notice. You can apply for a new plan at StudentAid.gov/idr at any time.
New repayment plans launched July 1, 2026
The One Big Beautiful Bill Act, signed in 2025, created two new plans that became available on July 1, 2026:
- Repayment Assistance Plan (RAP): a new income-driven plan.
- Tiered Standard Plan: a fixed-payment plan with a term based on how much you owe.
If you take out a new federal loan or consolidate on or after July 1, 2026, RAP and Tiered Standard are the only repayment plans you can use. Existing borrowers can still choose IBR for now. The older ICR and PAYE plans are being phased out by July 1, 2028.
A 1% interest rate cut for autopay, extended to December 31
The Education Department temporarily boosted the autopay discount from the usual 0.25% to 1%. The enrollment deadline was originally September 30, but the department extended it: borrowers who enroll in autopay by December 31, 2026, or who are already enrolled, get the 1% reduction through June 30, 2028. If you’re on a payment plan you can afford, turning on autopay through MOHELA is one of the easiest savings available.
RAP vs. IBR: how to choose your new plan
For most former SAVE borrowers, the choice comes down to RAP or IBR. Here’s how they compare:
| Feature | Repayment Assistance Plan (RAP) | Income-Based Repayment (IBR) |
|---|---|---|
| Monthly payment | 1% to 10% of your total adjusted gross income (AGI), rising 1 point per $10,000 of income, minus $50 per dependent | 10% of discretionary income (loans after July 1, 2014) or 15% (older loans), capped at the 10-year standard payment |
| Minimum payment | $10 a month | Can be $0 |
| Unpaid interest | Waived if your payment doesn’t cover it | Can grow, depending on your situation |
| Principal help | Government matches up to $50 a month in principal reduction for low payments | None |
| Forgiveness timeline | 30 years (360 qualifying payments) | 20 years (newer borrowers) or 25 years |
| Counts for PSLF | Yes | Yes |
| Parent PLUS eligible | No | Only after consolidation, with limits |
General rules of thumb:
- If you’re pursuing PSLF, both plans count. Pick whichever gives you the lower payment, since your balance will be forgiven after 10 years of qualifying payments either way.
- If you have a lower income and a big balance, RAP’s interest waiver and principal match can keep your balance from growing, but its 30-year timeline is long.
- If you’re counting on income-driven forgiveness outside PSLF, IBR’s 20-year or 25-year timeline may get you there sooner.
- If you have a high income, compare both against the standard plan. RAP takes 10% of your full AGI once you earn over $100,000.
Use the Loan Simulator on StudentAid.gov to plug in your real numbers before you decide. It’s the most reliable way to compare.
PSLF and MOHELA
If you work for a government agency or qualifying nonprofit, Public Service Loan Forgiveness can wipe out your remaining balance after 120 qualifying payments. A few things to keep in mind in 2026:
- Submit your employment certification regularly, ideally once a year and whenever you change jobs, using the PSLF Help Tool on StudentAid.gov.
- Months in the SAVE forbearance generally didn’t count toward PSLF. If you’re close to forgiveness, look into the PSLF buyback option, which lets you pay for certain past months of forbearance so they count.
- Check your count often. Compare the qualifying payment count in your MOHELA account with your record on StudentAid.gov, and report any drops right away.
MOHELA problems: lawsuits, false past-due notices, and errors
MOHELA has faced heavy criticism, and it’s worth knowing what’s been reported so you can protect yourself:
- The AFT lawsuit. The American Federation of Teachers sued MOHELA, alleging servicing failures affecting millions of borrowers, including incorrect information, miscalculated payments, and difficulty getting problems fixed. MOHELA denies wrongdoing. As of mid-2026, the case was paused while both sides negotiated a possible settlement.
- False delinquency notices. In early August 2026, some borrowers in SAVE forbearance received notices saying they were seriously past due, in some cases by thousands of dollars, even though they owed nothing. Several U.S. senators sent MOHELA a letter demanding answers by September 10, 2026.
- Oversight gaps. A March 2026 Government Accountability Office report found that staffing cuts at Federal Student Aid had halted some reviews of servicer accuracy, making errors more likely to slip through.
- Earlier problems. In 2023, the Education Department withheld more than $7.2 million from MOHELA for failing to send millions of billing statements on time.
This doesn’t mean MOHELA gets everything wrong, but it does mean you should verify, not assume.
How to protect yourself
- Compare MOHELA with StudentAid.gov. If your MOHELA account shows a status that StudentAid.gov doesn’t, like a past-due balance during forbearance, that’s a red flag.
- Screenshot everything: account status, payment amounts, plan confirmations, PSLF counts, and any notices.
- Get confirmations in writing for applications, plan changes, and phone calls. Write down the date, time, and representative’s name.
- Check your credit reports for false late payments. You can get free weekly reports at AnnualCreditReport.com. If a student loan shows up as delinquent when it shouldn’t, dispute it with the credit bureau and with MOHELA. Our Experian credit report guide walks through the dispute process.
- Don’t ignore notices, even confusing ones. Respond and document everything.
- Watch out for scams. Legitimate help with federal student loans is free. Never pay a company to enroll you in a repayment plan or forgiveness program, and never share your StudentAid.gov login.
How to file a complaint about MOHELA
If you can’t get a problem fixed, escalate:
- MOHELA’s escalation team. Ask the representative to escalate your issue, and get a reference number.
- Federal Student Aid Feedback Center. Submit a complaint at StudentAid.gov/feedback. The FSA Ombudsman Group helps resolve disputes that servicers can’t.
- Your state’s student loan ombudsman, if your state has one. Many states have created these offices to help borrowers.
- The Consumer Financial Protection Bureau at consumerfinance.gov/complaint.
- The credit bureaus, if errors show up on your credit report.
What if you’re in default?
Federal student loans go into default after about 270 days of missed payments. The government resumed collecting on defaulted loans in 2025, which can mean seized tax refunds and garnished wages. If you’re behind, contact your servicer or the Default Resolution Group as soon as possible about loan rehabilitation or consolidation to get back into good standing. RAP may also make payments more manageable once your loans are current.
Should you refinance MOHELA student loans with a private lender?
Refinancing federal loans into a private loan can lower your interest rate if you have strong credit and income. But you’d permanently give up federal protections, including income-driven plans like RAP and IBR, PSLF, deferment, and federal forbearance. For most people with federal loans, especially those using income-driven repayment or PSLF, that trade isn’t worth it. If you have private loans, or you’re sure you won’t need federal benefits, our guide to the best student loans compares private lender options.
Frequently asked questions
What is MOHELA?
MOHELA, the Missouri Higher Education Loan Authority, is a nonprofit that the U.S. Department of Education contracts to service federal student loans. It sends bills, processes payments and repayment plan applications, and tracks forgiveness progress, but the Department of Education owns the loans and sets the rules.
What happens to my MOHELA loans now that SAVE has ended?
If you were in SAVE, you’ll get a 90-day notice to choose a new repayment plan, such as RAP or IBR. If you don’t choose by your deadline, you’ll be placed in the Standard or Tiered Standard plan, which could raise your payment. You can apply for a new plan at StudentAid.gov/idr anytime.
What is the Repayment Assistance Plan (RAP)?
RAP is a new income-driven plan that launched July 1, 2026. Payments are 1% to 10% of your adjusted gross income, minus $50 per dependent, with a $10 minimum. Unpaid interest is waived, and any remaining balance is forgiven after 30 years. RAP payments count toward PSLF.
How do I contact MOHELA?
Log in at mohela.studentaid.gov or call MOHELA customer service at 888-866-4352. For official loan details, repayment plan applications, and the Loan Simulator, use StudentAid.gov.
Why did MOHELA say I’m past due when I’m in forbearance?
In August 2026, some MOHELA borrowers in SAVE forbearance received false delinquency notices. Compare your account with StudentAid.gov, take screenshots, contact MOHELA, and file a complaint at StudentAid.gov/feedback if it isn’t fixed. Check your credit reports and dispute any false late payments.
How do I file a complaint against MOHELA?
Ask MOHELA to escalate first. If that doesn’t work, file with the Federal Student Aid Feedback Center at StudentAid.gov/feedback, your state student loan ombudsman, or the Consumer Financial Protection Bureau. Keep records of every call, letter, and screenshot.
How do I get the 1% autopay interest rate cut?
Enroll in autopay through MOHELA by December 31, 2026. Borrowers who are enrolled by then, including those already on autopay, get a 1% interest rate reduction through June 30, 2028, instead of the usual 0.25%.
This article is for educational and informational purposes only and is not legal or financial advice. It is not affiliated with or endorsed by MOHELA or the U.S. Department of Education. Federal student loan rules, deadlines, and servicer assignments are changing rapidly in 2026, and some deadlines have been extended without public notice. Always confirm current details in your MOHELA account and at StudentAid.gov, and consider speaking with a nonprofit student loan counselor or attorney about your situation.
