As the cost of higher education continues to rise, many students and families turn to student loans to finance their education. In Missouri, the Missouri Higher Education Loan Authority (MOHELA) is a popular option for student loan borrowers. In this article, we’ll take a closer look at MOHELA, its history, the types of loans it offers, and the repayment options available to borrowers.
History of MOHELA
MOHELA was in 1981 by the Missouri General Assembly as a non-profit corporation. Its mission was to provide low-cost student loans to Missouri students and their families. Over the years, MOHELA has grown to become one of the largest student loan providers in the country, with a portfolio of more than $8 billion in student loans.
Types of Loans Offered by MOHELA
MOHELA offers a variety of loan options to help students finance their education. These include:
1. Federal Direct Loans: MOHELA is a servicer for Federal Direct Loans, which are by the U.S. Department of Education. These loans are available to undergraduate and graduate students and offer fixed interest rates.
2. Private Loans: MOHELA also offers private student loans to help fill the gap when federal loans are not enough to cover the cost of education. These loans have variable interest rates and are subject to credit approval.
3. Refinancing: MOHELA offers loan refinancing options for borrowers who want to combine their existing federal and private student loans into a single loan with a new interest rate and repayment term.
Repayment Options
MOHELA offers a variety of repayment options to help borrowers manage their student loan debt. These include:
1. Standard Repayment: Borrowers make fixed monthly payments over a 10-year period.
2. Graduated Repayment: Payments start off low and increase every two years over a 10-year period.
3. Income-Driven Repayment: Payments are on the borrower’s income and family size and can be as low as $0 per month.
4. Deferment and Forbearance: Borrowers may be eligible for a deferment or forbearance if they experience financial hardship, such as unemployment or illness.
It’s important to note that not all repayment options are available for all types of loans. For example, income-driven repayment plans are only available for federal loans, while private loans may have different repayment terms and options. It’s essential for borrowers to understand the terms of their loans and the repayment options available to them. MOHELA offers resources and tools to help borrowers manage their student loan debt, including online account access, loan calculators, and personalized counseling.
MOHELA student loan
MOHELA is a popular option for student loan borrowers in Missouri. As a servicer for Federal Direct Loans, MOHELA handles managing the loans and helps borrowers navigate the repayment process. Besides federal loans, MOHELA also offers private student loans and refinancing options.
When borrowing a student loan from MOHELA, it’s important to understand the terms and repayment options available. Federal Direct Loans have fixed interest rates and a variety of repayment plans to choose from, including standard, graduated, and income-driven repayment. Private loans, but, have variable interest rates and may have different repayment terms and options. Borrowers should consider their options before taking out a private student loan, as they may not offer the same borrower protections as federal loans.
MOHELA offers a variety of tools and resources to help borrowers manage their student loan debt. This includes online account access, loan calculators, and personalized counseling. MOHELA also offers deferment and forbearance options for borrowers who experience financial hardship, such as unemployment or illness.
If you’re struggling to make your student loan payments, it’s important to reach out to MOHELA and explore your options. They may be able to offer alternative repayment plans or help programs to help you manage your debt. Remember, falling behind on your student loan payments can have serious consequences, including damage to your credit score and wage garnishment. It’s important to stay on top of your payments and seek help if you need it.
Can I Get Student Loan Forgiveness Through MOHELA?
MOHELA, as a loan servicer, does not have the authority to forgive student loans. But, as a borrower of federal student loans, you may be eligible for loan forgiveness or discharge through specific programs offered by the U.S. Department of Education.
Here are some programs that may provide loan forgiveness or discharge:
1. Public Service Loan Forgiveness (PSLF): This program forgives the remaining balance on eligible Direct Loans after the borrower has made 120 qualifying payments while working full-time for a qualifying employer in the public service sector.
2. Teacher Loan Forgiveness: This program provides up to $17,500 in loan forgiveness for eligible teachers who work full-time for five consecutive years at a low-income school or educational service agency.
3. Closed School Discharge: This program discharges federal student loans if the school closes while the borrower is or within 120 days after withdrawal.
4. Total and Permanent Disability Discharge: This program forgives federal student loans if the borrower is.
5. Borrower Defense to Repayment: This program provides loan forgiveness to borrowers who were by their school.
It’s important to note that eligibility requirements vary for each program, and some need specific documentation or proof of eligibility. You can learn more about these programs and their requirements on the U.S. Department of Education’s website. If you have any questions about loan forgiveness or discharge, you can also contact MOHELA or the U.S. Department of Education for guidance.
How to Contact MOHELA
There are several ways to contact MOHELA, depending on your needs and preferences:
1. Phone: You can call MOHELA’s customer service line at 1-888-866-4352. The line is open Monday through Thursday from 7:00 a.m. to 9:00 p.m. CT and Friday from 7:00 a.m. to 5:00 p.m. CT.
2. Email: You can email MOHELA through their online contact form on their website. fill out the form with your information and inquiry, and MOHELA will respond to you via email.
3. Mail: You can send mail to MOHELA’s mailing address at MOHELA, P.O. Box 1028, Chesterfield, MO 63006-1028.
4. Online Chat: You can also chat with a MOHELA representative online by clicking the “Chat” button on their website during their regular business hours.
5. Social Media: MOHELA is active on social media, including Facebook and Twitter. You can reach out to them through these platforms as well.
When contacting MOHELA, be sure to have your account information and loan details ready, as this will help them assist you more. Additionally, it’s important to keep copies of any correspondence or communication with MOHELA for your records.
Conclusion
MOHELA is a popular option for student loan borrowers in Missouri. With a variety of loan options and repayment plans, MOHELA can help students and their families finance their education and manage their debt. If you’re considering taking out a student loan, be sure to do your research and compare your options before making a decision.
