In the past several years, MOHELA has become a servicer for the federal government for student loans across all states in the U.S. Department of Education Federal Loan Program in October 2011. MOHELA became the first servicer in the not-for-profit (NFP) sector to receive a contract and began servicing student loans owned by the federal government under the U.S. MOHELA leaders also have been elected to industry and community board and serve on a variety of industry-related committees. Department of Education, and maintained a compliance performance rating of 97 percent in converting federal student loans to repayment, collecting delinquent loans, and filing timely claims with guaranty agencies. MOHELA was named an 'Exceptional Performer' by the U.S.

A majority of MOHELA’s serviced portfolio earn a fee paid to MOHELA from the Department of Education. Net income from student loans is typically around 1% on loans that MOHELA owns. MOHELA operates and pays operating costs exclusively from revenues derived from its own operations. From its humble beginnings with fewer than ten employees, MOHELA has grown to more than 625 full-time staff members and works with students, schools and lenders in all 50 states. Since that original issue, MOHELA has generated its own funding from beginning to present day. Initial funding to establish operations came from a $65 million bank letter of credit, guaranteed by several of the then members, and was repaid following the issuance of bonds. The “authority” is governed by seven board members operating on alternating five-year terms five of whom are appointed by the Governor of the state of Missouri, subject to the advice and consent of the Missouri Senate, and two others are representatives from the Missouri Coordinating Board of Higher Education – one of which is a permanent seat to be filled by that agency’s commissioner. MOHELA was established to “…assure that all eligible post-secondary education students have access to student loans” (RSMo 173.360). 5 Types of student loans owned and serviced by MOHELAĪs a “public instrumentality and body politic and corporate of the state of Missouri,” MOHELA was created in 1981 by legislation signed into law by Governor Christopher S.A second loan servicing center opened in Columbia, Missouri in 2013.

More than 625 full-time MOHELA staff members work with the Department of Education, families, lenders, schools and students servicing upwards of $39 billion in student loans. MOHELA also formed the Missouri Scholarship Foundation, a tax-exempt nonprofit 501(c)(3) organization, to ease higher education costs for students. MOHELA has provided a total of more than $300 million in loan forgiveness. MOHELA was created, in part, to help students obtain low-cost education loans. MOHELA received the first not-for-profit (NFP) contract and began servicing student loans owned by the federal government under the U.S. While fully supporting a portfolio of legacy student loans through FFELP, MOHELA completed steps to become a contractor to service federal student loans. MOHELA is among the 10 largest student loan servicers, alongside FedLoan Servicing (PHEAA), Granite State (GSMR), HESC/ Edfinancial, Navient, Nelnet, and OSLA Servicing (as well as previously CornerStone and Great Lakes Educational Loan Services, Inc.).Ĭreated in 1981 as a quasi-governmental entity, MOHELA participated in the Federal Family Education Loan Program (FFELP) for nearly three decades. The Higher Education Loan Authority of the State of Missouri, aka the Missouri Higher Education Loan Authority or MOHELA, is one of the largest holders and servicers of student loans in the United States. Higher Education Loan Authority of the State of Missouri ( Learn how and when to remove this template message)

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