Overview of MOHELA’s Student Loan Forgiveness Options
MOHELA, the Missouri Higher Education Loan Authority, is a major federal student loan servicer that manages several key student loan forgiveness programs for borrowers. These programs can provide significant relief for eligible borrowers struggling with student debt.
Public Service Loan Forgiveness (PSLF)
The Public Service Loan Forgiveness (PSLF) Program is one of the most well-known student loan forgiveness options. It allows you to receive forgiveness of the remaining balance of your Direct Loans after making 120 qualifying monthly payments while working full-time for a qualifying public service employer, such as a government organization or non-profit.
Teacher Loan Forgiveness
If you are a teacher in a low-income school or educational service agency, you may be eligible for Teacher Loan Forgiveness. After five consecutive years of teaching, you can have up to $17,500 of your federal student loans forgiven.
Closed School Discharge
If your school closes while you’re enrolled or soon after you withdraw, you may be eligible for a discharge of your federal student loans. This can provide significant relief if your school abruptly shuts down, leaving you with debt but no degree.
Total and Permanent Disability Discharge
If you are totally and permanently disabled, you may be eligible to have your student loans discharged. This can be a lifeline for borrowers who are no longer able to work and earn income to repay their loans.
Death Discharge
If the borrower, or the student on whose behalf the loan was obtained, dies, the loan may be discharged. This can provide much-needed financial relief for the borrower’s family.
Upcoming Transition to the Department of Education
It’s important to note that beginning May 1, 2024, the management of the PSLF and TEACH Grant programs will transition from MOHELA to the U.S. Department of Education via StudentAid.gov. This will result in a temporary pause in processing PSLF forms from May 1 to July 2024, and a pause for TEACH Grants until fall 2024.
MOHELA’s student loan forgiveness programs can be a lifeline for eligible borrowers, providing much-needed relief from the burden of student debt. However, with the upcoming transition to the Department of Education, it’s crucial for borrowers to stay informed and take action to ensure a smooth process for their forgiveness applications.
