The Department of Education (ED) recently announced that it was “streamlining” the PSLF online experience by making changes to “improve the overall borrower experience” for Public Service Loan Forgiveness (PSLF) program borrowers. As part of this improvement, ED is pausing all PSLF form processing while it transitions from MOHELA, the current PSLF program servicer, to ED via studentaid.gov. Here, we’ll give answers to your most frequently asked questions about the PSLF processing pause.
Where is my PSLF Information?
A: Starting May 1, 2024, PSLF borrowers are no longer be able to access their PSLF progress, certified employment, or payment counts on MOHELA’s borrower portal. The information will be available after the processing pause ends in July. At that time, PSLF borrowers will have all of their PSLF information centralized on a new PSLF dashboard on StudentAid.gov.
Q: What if I meet PSLF requirements during the pause?
A: If you complete the required 120 qualifying payments needed to earn PSLF during the pause, any additional payments you make will be refunded or applied to your other federal student loans with outstanding balances, once the transition is complete and processing resumes. Your loans will be forgiven by your loan servicer once your PSLF form is processed.
Q: Do I still have to pay my loan?
Yes; the temporary pause is not a payment pause. Borrowers still need to make monthly, on-time payments to MOHELA. If you believe you have reached 120 qualifying payments and otherwise met the requirements for forgiveness (or will reach it during the processing pause), you can contact your servicer directly to request a forbearance. Otherwise, payments are still due during the pause.
Q: Who is handling my loan?
A: ED itself will not be directly servicing PSLF accounts after the transition. It will utilize private contractors (AKA “BPO contractors”, or BPOs), to handle most PSLF servicing responsibilities. BPOs will process PSLF employment certifications, make qualifying payment and forgiveness determinations, and update accounts.
Q: I already submitted my PSLF form. Will it be sent back to me?
A: Borrowers are still able to submit PSLF forms during this period, but they will not be processed until the pause ends.
Q: Will I stay with MOHELA?
A: At MOHELA’s behest, a portion of their borrower accounts will be transferred to other federal student loan servicers. Borrowers who transition servicers will receive a communication from MOHELA and their new loan servicer with instructions for their next steps.
For borrowers transitioning away from MOHELA, next steps may include:
- Establishing an online account with their new servicer
- Updating their contacts to include the new servicer’s information
- Providing changes in their own contact information to the new servicer
- Making changes necessary to direct federal student loan payments to the new servicer, e.g., banking information or auto-payment settings
If you have any questions about the PSLF processing pause, NSDFC is here to help. Feel free to send us a message using the link above.
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