Nearly $55
Billion Processed for 737,000 Individual Borrowers,
Including Teachers and Other Public Servants
ST.
LOUIS, Sept. 10, 2024 /PRNewswire/ -- MOHELA, a
non-profit, government corporation, with 40 years of experience and
a track record of providing exceptional customer service to the
borrowers it serves, issued a statement today on its record as a
federal contractor for the U.S. Department of Education's Office of
Federal Student Aid (FSA):
"No servicer in the history of the Public Service Loan
Forgiveness (PSLF) program has processed the forgiveness of more
loans held by teachers and other public servants than MOHELA. We
are committed to providing the highest quality of customer service
to the borrowers that we serve. We are proud of our work and our
record, and we will vigorously defend it."
Below are key facts on MOHELA's record as a federal
contractor:
- During the unprecedented return to repayment (R2R) event in
2023, MOHELA, on behalf of FSA, helped 6 million borrowers enter
repayment and facilitated over 3.1 million customer service calls,
while following FSA guidance to reduce funding and resources.
MOHELA hired additional staff and invested in new customer service
tools to continue to provide the highest quality of service for
borrowers during the peak demand of return to repayment, and, as a
result, is operated under a projected net loss of $54.4 million in fiscal year 2024.
- MOHELA's current hold times average 1-5 minutes; its
customer service policies, including those last fall during the
return to repayment (R2R) surge, have always followed guidance from
FSA. "Call deflection" was a technique that all contractors,
including MOHELA, were directed to employ by FSA during the R2R
period to address the anticipated dramatic call volume.
FSA's July 2023 Communications
Playbook for R2R, issued before the start of R2R, repeatedly
emphasizes the need for FSA's loan servicers to utilize call
deflection strategies.
- From July 1, 2022, through
April 30, 2024, MOHELA served as
the interim PSLF servicer and processed the largest amount of
forgiveness—nearly $55 billion for
737,000 individual borrowers—by an FSA contractor in the history of
the program.
- As a federal contractor, MOHELA adheres to FSA requirements and
guidance that dictates the overall federal student loan repayment
process, as well as the service and assistance that is provided to
FSA borrowers.
In March 2024, MOHELA sent a
Cease-and-Desist letter to the Student Borrower Protection Center,
which can be viewed here, calling on the organization to
immediately disband their PR campaign that is irresponsibly
promoting false and misleading claims about MOHELA's work as a
federal contractor. Other special interest groups have
continued to promote the same and similar false claims, including
through lawsuits and PR attacks. In this country, anyone can file a
lawsuit on any basis, which takes time to sort out in the courts.
MOHELA asserts that recent lawsuits by such groups against MOHELA
are without merit, which will ultimately be proved in
court.
About MOHELA
MOHELA is a non-profit, government
corporation, with 40 years of experience and a track record of
providing exceptional customer service to the borrowers it serves.
MOHELA plays an essential role in the federal student loan
ecosystem, providing support and assistance for around 8 million
federal borrowers on behalf of the U.S. Department of Education's
Office of Federal Student Aid (FSA). The organization is frequently
named a top servicer in FSA quarterly surveys due to its
performance and commitment to providing high-quality customer
service to their borrowers.
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SOURCE MOHELA