• Home
  • Politics
  • About 2 Million People Soon to Receive New Student Loan Servicer

About 2 Million People Soon to Receive New Student Loan Servicer

Nearly 2 million Americans who are borrowers of student loans will be receiving a new federal student loan servicer as soon as July. Many of these individuals are seeking debt relief from the Public Service Loan Forgiveness program. FedLoan, which is part of the Pennsylvania Higher Education Assistance Agency known as PHEAA, is the current servicer of these loans.

However, about a year ago PHEAA decided to end its contract with the federal government and starting last fall the federal loans serviced by FedLoan began being transferred in stages to other services. Around 2 million of these accounts still need to be transferred.

The loans of borrowers enrolled in the Public Service Loan Forgiveness program will begin being transferred to the Missouri Higher Education Loan Authority, MOHELA, in July. According to the Department of Education, the transfers will continue throughout the rest of the summer.

The Public Service Loan Forgiveness program cancels the debt of government and nonprofit workers after they have completed 10 years of qualifying payments. Previously, once a borrower requested to be enrolled in the program their loans were transferred to FedLoan.

However, FedLoan has received criticism from advocates for making errors and providing misinformation. A lawsuit settled by PHEAA in 2021 was brought by the Massachusetts Attorney General, Maura Healey, which alleged FedLoan violated state and federal consumer protection laws.

Borrowers should expect to receive several notices as their loans are being transferred. FedLoan is expected to send a notice 15 days before the transfer occurs, and then MOHELA will be sending a welcome notice once everything has been completed. The change will not impact any existing terms, conditions, interest rates, loan discharge, forgiveness programs or repayment plans because the loans are simply being transferred, not sold.

Share:

Share on facebook
Share on twitter
Share on linkedin
Share on pinterest
Share on email

Join Our Mailing List

    Recent Articles

    Sarah Palin Loses House for Alaska

    Democrat candidate, Mary Peltola, beat Sarah Palin in the race for Alaska’s seat in the House. The win for Petola made her the first Native Alaskan to earn a seat in the U.S. Congress. The victory for Petola is also interesting because she won the seat for the Democratic party in a state that has been considered Republican-dominated for the last several decades.

    What Caused the Saturday Night Colorado Shooting?

    Saturday night, the day before Sunday’s Transgender Day of Remembrance, a gunman killed five and injured 17 people at the gay nightclub Club Q in Colorado Springs, Colorado. The gunman has since been indicted and charged with five counts of murder and five counts of bias-motivated crimes.

    Supreme Court Paves the Way for Donald Trump’s Tax Returns to Be Handed Over to Congress

    The United States Supreme Court paved the way this week for a Democrat-controlled House committee to obtain Donald Trump’s tax returns. The House Ways and Means Committee chairman, Democrat Richard Neal, first requested the tax returns from the IRS in 2019, while Trump was still in office.
    When the IRS refused to turn over the returns, the Ways and Means Committee filed a lawsuit against the IRS, Treasury, and former Treasury Secretary Steven Mnuchin. The case proceeded through both federal and state courts, with Trump’s legal team repeatedly failing in its efforts to keep the returns hidden from public view.

    Why Do We Need Political Parties?

    In a democracy, political parties are one of the most important institutions. For most people, democracy is synonymous with political parties. It is crucial to understand the nature and operation of them. If we visit rural and distant places and conduct a survey, their understanding of the constitution may be minimal, but they will undoubtedly be aware of the political parties.

    Elon Musk uses Twitter as a political weapon

    When Musk first expressed interest in purchasing Twitter, there were numerous theories as to why. Given that he already owned two other influential companies focused on engineering solutions, it was unclear whether he was genuinely trying to improve a site he saw as a video game, accumulating social power and increasing the bottom line of his businesses, or simply having a laugh. These explanations may still shed light on why he acted as he did. However, it is now impossible to ignore the emerging reality that Musk regards Twitter ownership as a powerful tool for right-wing activism.

    Elon Musk Restores Trump’s Twitter Account

    Just a week after purchasing Twitter, Elon Musk has already laid off nearly half of the platform’s workforce, forcing the remaining employees to work in office instead of remotely, and even sign a pledge to commit to the company or quit. Now, the app’s owner is stirring the pot again, as he has reinstated the Twitter account of former president Donald Trump.

    Hey! Are you enjoying NYCTastemakers? Make sure to join our mailing list for NYCTM and never miss the chance to read all of our articles!