Navient Student Loans Transfer to MOHELA: What You Need to Know

The student loan servicer Navient will be transferring their loans, including Public Service Loans Forgiveness loans (PSLF), to MOHELA. While normally, this shouldn’t have any effect, unfortunately, there have been errors based on a follow-up blog post that you can read below concerning errors in credit reporting.

Updated on January 7, 2025.

Key Points:

• Navient will no longer be servicing student loans.
• MOHELA to service 2.7 million borrowers.
• Public Service Loan Forgiveness (PSLF) to also be handled by MOHELA
• Log into the FSA website is https://studentaid.gov to confirm your student loan servicer.

Per a press release from student loan servicer Navient, servicing of loans will now be handled by MOHELA, including private loans and Federal Family Education Loan Program (FFEL) student loans.

• Credit Report Errors with Student Loans and Data Breaches

MOHELA will also be handling Public Service Loan Forgiveness (PSLF) & Temporary Expanded PSLF (TEPSLF) Certification & Application. This change is expected to affect 2.7 million borrowers, but Navient will continue to own the loans. The process will take approximately 18 to 24 months.

• President Biden Announces Last Batch of Student Loan Forgiveness

At issue is MOHELA’s reputation for handling student loans. There were issues regarding long hold times on phone calls, sending out statements late, and the billing statements were even confusing. This resulted in the Department of Education withholding $7 million in payments to MOHELA by the Biden administration.

Below is the email I received from MOHELA.

The U.S. Department of Education (ED) has transferred the customer service of your federal student loan account to MOHELA, another member of ED’s federal loan servicer team. Your loans were not sold. ED will continue to own your loans; however, MOHELA will manage your loans and assist you on ED’s behalf as your federal student loan servicer. 

• What Happens to Student Loans if the Department of Education Dept Is Eliminated?

This change in servicer will not impact the existing terms, conditions, interest rate or available repayment plans of your federal student loans. Your full account details should be available no later than 10 business days after the loan transfer date included in the transfer notification sent from your other loan servicer.

As the PSLF servicer, we’ll process your Public Service Loan Forgiveness (PSLF) & Temporary Expanded PSLF (TEPSLF) Certification & Application (referred to as PSLF form) to certify your employment, track qualifying payments, and process your final application for loan forgiveness. We will be your point of contact for questions about the PSLF program and your student loans. If you’d like to learn more about the PSLF Program including the limited PSLF waiver, visit StudentAid.gov/publicservice.

What’s Next? 

As the loans are transferred, your account will be updated with information about your loans and payments you’ve made. Watch for more information when the transfer is complete and we begin to determine your number of qualifying payments. We look forward to providing you with excellent service.

See where your loans are in the transfer process.

Now is the time to:

• Create your MOHELA online account,
• Update your contact information,
• Enroll in paperless correspondence delivery,
• Stay in the loop by signing up for text and email notifications,
• Take your account on the go with our mobile app, and
• Read common questions and answers about loan servicing at MOHELA
• Learn more about PSLF and how it works.

If you don’t know who your servicer is, you can log into the Federal Student Aid website to confirm your loan servicer. The FSA website is https://studentaid.gov.

Below is the press release from Navient.

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• Bankruptcy
• Your Wallet

Please note the information on this site does not constitute legal advice and should be considered for informational purposes only.