Action Required: Navient Federal Student Loans are Fully Transferring to MOHELA

Navient has completed the transfer of its federal student loan accounts, including Federal Family Education Loan Program (FFEL) and Public Service Loan Forgiveness (PSLF) loans, to MOHELA for servicing. While Navient no longer services these loans, the process has not been without significant issues that all borrowers must address immediately.

By Alexander Hernandez, J.D., Professor, and Author of Consumer Bankruptcy Law (Routledge).

Updated on December 9, 2025.

Key Takeaways for Borrowers:

• Navient is out: Navient has ceased all servicing of federal student loans.
• MOHELA is your new servicer: MOHELA now services the accounts for millions of borrowers, including all Public Service Loan Forgiveness (PSLF) & Temporary Expanded PSLF (TEPSLF) accounts.
• Take Action: Log into the Federal Student Aid (FSA) website to confirm your servicer and ensure your contact information is up-to-date.
• Important Note: There have been widespread reports and a Senate investigation revealing credit reporting errors tied to the loan transfers, potentially affecting millions of borrowers.

The MOHELA Service Track Record & Credit Reporting Concerns

This transfer is particularly concerning given MOHELA’s troubled history of servicing federal student loans. The Department of Education has previously withheld payments from MOHELA due to service failures, which include:

• Failure to send timely billing statements.
• Long customer service hold times.
• Errors in processing Income-Driven Repayment (IDR) plan requests.

More recently, a Senate investigation revealed that issues during the servicer transitions may have contributed to nearly two million credit reporting errors, such as loan duplication, which could negatively impact a borrower’s credit score.

If Your Loan Was Transferred, Take These Steps

Check Your Credit Report: Obtain a free copy of your credit report from all three major bureaus to verify that your transferred student loan accounts are being reported correctly.

Challenge Errors Immediately: If you spot any duplication or incorrect reporting, file a dispute with the credit reporting agency immediately.

What Loan Details Were Transferred?

The good news is that the transfer of your loan servicer does not impact the terms of your loans:

• Your existing terms, conditions, and interest rate remain the same.
• Your available repayment plans are unchanged.
• Any past payments made toward PSLF or IDR forgiveness should be counted, but this data must be confirmed on your new MOHELA account.

Your Next Steps with MOHELA

While the transfer process itself should not require a borrower to reapply for benefits, you need to be proactive with your new servicer. Now is the time to:

The U.S. Department of Education (ED) has transferred the customer service of your fed

• Create Your Account: Immediately create your online account on the MOHELA website.
• Verify Data: Once logged in,  review your account details, especially your address, phone number, and, most critically, your qualifying payment count if you are pursuing PSLF.

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

Updated initially on January 7, 2025.