FAQs
Zero balance – the Education Department may have forgiven the student loan debt, but what's more likely is that the loans were moved to a different servicer. Disappeared – the loans defaulted several years ago and fell off the report.
Why does MOHELA show zero balance? ›
MOHELA, the loan servicer for the PSLF program, has stated that payment counts for PSLF may temporarily show zero qualifying payments. This can be really confusing for borrowers who were told they needed to consolidate their loans in order to be eligible for PSLF or to maximize their eligibility for PSLF.
Why do all my student loans say 0% interest? ›
The U.S. Department of Education's COVID-19 relief for student loans has ended. The 0% interest rate ended Sept. 1, 2023, and payments restarted in October. Never made student loan payments before?
Why did my student loan disappear from my credit report? ›
There are specific situations when a student loan can be removed from a credit report and nearly all of them are related to inaccuracies. Some examples of inaccurate information include: Missed or late payments (either during regular repayment periods or forbearance and deferment) Student loan default.
Why does my save plan say 0? ›
How can my monthly payment amount be $0? IDR plans protect a minimum amount of income to ensure you can cover basic necessities like food and housing costs. Since IDR plans are calculated based on income and family size, if your household income is below that level, you will have a $0 monthly payment.
Is Nelnet part of student loan forgiveness? ›
Teachers with loans through Nelnet can pursue teacher loan forgiveness. Teachers may qualify to have a maximum of $17,500 or $5,000 in student loans forgiven, depending on the subject area taught, if specific requirements are met.
Are MOHELA loans going to be forgiven? ›
If you had a job or get a job at a government or eligible not-for-profit organization and repay your loans based on your income, you may qualify for forgiveness of your Direct Loans after 120 qualifying payments and employment.
How do I know if my student loans are forgiven MOHELA? ›
Log in to StudentAid.gov to track your PSLF progress. For updates on your application status, visit MOHELA's website or contact them at 1-855-265-4038. Be aware that MOHELA is experiencing historic submission volume that may delay response time. We appreciate your patience.
What is a zero balance loan? ›
No additional interest will accrue on the loan, because the principal balance is zero. However, any outstanding due interest, fees, or payoff fees will remain. Amount and days past due will continue to be calculated as they were before the loan reached a $0 principal balance.
Do student loans ever get written off? ›
Federal student loans go away:
After at least 20 years of student loan payments under an income-driven repayment plan — IDR forgiveness and 20-year student loan forgiveness. After 25 years if you borrowed loans for graduate school — 25-year federal loan forgiveness.
As long as your loans were in good standing at the time they were discharged and your accounts are being reported properly to the credit reporting bureaus, you won't see a huge difference in your score. On the other hand, you could see your score drop if your account wasn't in good standing prior to the discharge.
Is it true that after 7 years your credit is clear? ›
Highlights: Most negative information generally stays on credit reports for 7 years. Bankruptcy stays on your Equifax credit report for 7 to 10 years, depending on the bankruptcy type. Closed accounts paid as agreed stay on your Equifax credit report for up to 10 years.
What's going on with MOHELA student loans? ›
MOHELA is facing a class-action lawsuit from borrowers who allege the company repeatedly failed to process their PSLF applications. Come May 1, the company will no longer be the sole servicer for the loan forgiveness program as the Education Department revamps its servicing operations.
How will I know if my PSLF is approved? ›
What will happen if my Public Service Loan Forgiveness (PSLF) application is approved? The PSLF servicer will notify you of the approval and the next steps in the process, depending on how many qualifying payments you have at the time of the PSLF form approval.
How do I know if I am getting a PSLF refund? ›
If you qualify, you should receive PSLF automatically and get a notification from your student loan servicer. After that, if an overpayment is identified, you can expect a refund within a couple of weeks or up to two months.
What happened with MOHELA student loans? ›
The Education Department said the Biden administration has made clear it won't let borrowers pay for the actions of student loan companies. In October, the feds issued a $7.2 million penalty to MOHELA for failing to send millions of borrowers their bills on time when payments resumed.
