Edfinancial took over the servicing of certain federal student loan accounts that were previously managed by MOHELA. This transition involved moving accounts to Edfinancial's new loan servicing platform.
The MOHELA to Edfinancial Transition
Historically, federal student loan accounts can be transferred between different loan servicers. In a significant transition, some accounts originally serviced by MOHELA were moved to Edfinancial. This means that for those specific borrowers, Edfinancial became their new point of contact for managing their federal student loans.
Here's a quick overview of this specific account transition:
| Previous Loan Servicer (for transitioned accounts) | New Loan Servicer |
|---|---|
| MOHELA | Edfinancial |
This change was part of broader efforts by Federal Student Aid to streamline loan servicing operations, ensuring that all accounts are successfully transitioned to the designated servicers.
What This Means for Borrowers
For borrowers whose accounts were transferred from MOHELA to Edfinancial, several key aspects of their loan management changed:
- New Point of Contact: All future correspondence, payment inquiries, and account management are handled directly by Edfinancial.
- Account Access: Borrowers need to set up new online accounts or log in through Edfinancial's platform to access their loan details, make payments, or update information.
- Payment Instructions: While payment amounts and due dates typically remain the same, the method or payee for submitting payments will shift to Edfinancial. It's crucial for borrowers to update any automatic payments to reflect the new servicer.
- Loan Information Consistency: The terms and conditions of the federal loans themselves, such as interest rates and repayment plans, remain unchanged. Only the entity managing the account is different.
Understanding Federal Student Loan Servicers
Federal student loan servicers are companies that the U.S. Department of Education assigns to handle the billing and other services for your federal student loans. They are your primary point of contact for any questions about your loan, payment options, and repayment plans.
Key responsibilities of a federal student loan servicer include:
- Processing payments and managing your loan balance.
- Helping you choose or change a repayment plan.
- Assisting with deferment, forbearance, or other repayment options.
- Answering questions about your loan and providing statements.
For the most up-to-date information regarding federal student loan servicers and any ongoing transitions, always refer to the official Federal Student Aid website. You can find general announcements and updates on loan servicers by visiting studentaid.gov.
