Loan Shocker: Student Loans Facing Surprise Transfer! Act Now to Avoid Hidden Fees!

The Education Department will transfer some student loan borrowers to a different servicer. Here’s what you need to know

The U.S. Department of Education is transferring student loans currently serviced by Mohela, the Missouri Higher Education Loan Authority, to different servicers.

Over 1 million borrowers will be affected by this change.

Mohela has faced controversy recently for failing to send timely billing statements and causing delinquency for over 800,000 borrowers.

A Senate subcommittee held a hearing about Mohela’s performance as a student loan servicer.

Borrowers being transferred will receive notices from Mohela and their new servicer.

They will need to create an online account with the new servicer and reenroll in automatic payments to receive the small interest rate discount.

If a borrower encounters issues with their new servicer, they can file a complaint with the Department of Education’s Federal Student Aid unit.

After the transfers, Mohela will continue to service loans for at least 6 million borrowers.

Mohela requested the transfers.

Experts believe the transfers may address capacity issues that led to the recent disruptions in servicing.

The goal of these transfers is to improve loan servicing and protect borrowers from potential errors and misconduct experienced with Mohela in the past.