About 2 million federal student loan borrowers, many of whom are seeking debt relief from the Public Service Loan Forgiveness program, will get a new federal student loan servicer as soon as early July.
People are also reading… In recent years, FedLoan was tasked with handling the loans for every borrower seeking debt relief from the Public Service Loan Forgiveness program, which cancels the debt of government and nonprofit workers after making 10 years of qualifying payments. Once a borrower indicated they want to enroll in the program, their loans were transferred to FedLoan.
A notice from FedLoan is expected to be sent at least 15 days before the transfer occurs, followed by a welcome notice from MOHELA once the transfer is complete. The Department of Education post updates about PSLF processing and loan transfers to its website Studentaid.gov. The Department of Education continues to review PSLF borrowers' past payments to count those who are newly eligible for the forgiveness program. Due to the temporary waiver, it no longer matters what kind of federal student loan a borrower had or what payment plan he or she was enrolled in. All payments will be eligible for the PSLF program if the borrower was working full time for a qualifying employer.