Mohela Student Loans Application Guide and Requirements 2024

Filed in Loan, Student Loan by on January 19, 2024

If you intend to apply for a Mohela student loan in 2024, you should read this information! We’ll walk you through the application process and the standards you must meet to be eligible.

We’ll also provide tips and advice on how to make your application as successful as possible. So, if you’re ready to take the first step toward securing financial aid for your education, keep reading! 

Mohela Student Loans

Mohela Student Loans Application Guide

A student loan’s life cycle begins with the signing of the Master Promissory Note (MPN) and ends when you make the final payment. 

Taking out student loans is a significant step in your life as well as a large financial commitment. Depending on the sort of loan(s) you have, you should understand what steps you need to follow to properly repay your debt.

Borrowers typically go through three phases when applying for a Federal Direct Loan. Depending on where you are in the student loan life cycle (in school, grace, or repayment),

Mohela will contact you about any activities you may need to undertake or information you should be aware of. The following is a summary of the steps in the Federal Direct Loan life cycle.

Private loans and other types of federal student loans may have different stipulations regarding grace periods, interest rates, and student loan perks. Contact your loan servicers to learn more about your unique terms and circumstances.

Mohela Student Loans Application Requirements 2024

If you meet all of these requirements below, you can apply for a Mohela student loan by completing the Free Application for Federal Student Aid (FAFSA)

  • Be a U.S. citizen or eligible non-citizen.
  • Be enrolled at least half-time in an eligible degree or certificate program.
  • Maintain satisfactory academic progress in your program.
  • Be making satisfactory progress on any prior federal student loans.

How to Start Repaying Your Student Loans

When you are in college, you should be focused on your studies. But when you graduate, you must balance finding a job with the duty of having to pay off your student loans.

Here is what you should know about repaying your MOHELA student loans when graduation day rolls around.

Create an Online Account

The first thing you should do is to create an online account with MOHELA to do so click here. You might want to create your account while you are still in school.

This is where you update your contact information so MOHELA can get in touch with you if they need to. It is also where you can view your balance and make your payments electronically, once they start being due

Grace Period of a Few Months

While college students typically have a grace period of a few months after graduation when they do not have to make any payments, it is wise to start paying off your loans as soon as you can afford to.

No payment is too small, and beginning repayment early will save you money in the long run. Once the grace period is over, the unpaid interest on your student loans will be added to the principal balance, adding to the amount of money you have to pay back

Create a Budget

where you make a list of all of your income and expenses, and determine how much money you can afford to put toward your loans. Then you can determine which MOHELA repayment plan works best for you

The Winning Advantage of MOHELA Student Loan Forgiveness

Nobody wants to pay more than they have to. Those who do not make a lot of money or who choose a life of public service could have the opportunity to take advantage of MOHELA’s loan forgiveness programs.

You could be qualified to have part of your loans forgiven in the following situations:

  • If you are in an income-driven repayment plan, and you have made on-time payments for 20 to 25 years, you may be qualified to have the remaining balance on your loans forgiven. However, keep in mind that the forgiven amount is considered taxable income, so you will have to pay taxes on it
  • When you are working for a government or not-for-profit organization, are on an income-driven repayment plan, and have made 10 years of qualifying payments, you might be eligible for Public Service Loan Forgiveness.
  • If you are a teacher, you may also benefit from loan forgiveness if you teach full-time in a low-income school for five consecutive years. If you fit the bill, you may be able to have up to $17,500 in loans forgiven.
  • In the case of the death of the primary borrower or a dependent student on a PLUS Loan, your loans may be eligible for partial or full discharge.
  • When your school closes while you are enrolled and you’re unable to complete your program as a result, or your school closes within 120 days after you withdraw, your loans may be eligible for a discharge.
  • Suppose you cannot work due to a disability or are a veteran who is unable to work due to a service-related disability. In that case, you may qualify to have your federal student loans discharged.

What to do if You Can’t Pay

Sometimes circumstances may leave you in a financial bind. Whether you suffer a layoff, a medical crisis, or some other unforeseen circumstance, you may find that you are unable to make the monthly payment on your MOHELA student loans.

The worst thing you can do in that situation is to put your head in the sand and ignore it. If you don’t pay your student loans on time, it could adversely impact your credit.

You can protect your credit by contacting customer service immediately, as MOHELA offers borrowers options such as deferment and forbearance to help them get through a rough financial patch.

Deferment

A deferment is a period in which you can postpone your payments. Situations that may qualify you for deferment include unemployment, economic hardship, and active military duty.

One of the benefits of getting a deferment is that interest does not accrue during the period that you are not making payments

Forbearance

Like deferments, forbearance is a period in which you can postpone your payments. However, there is a big difference.

With forbearance, the interest accrues during the period that you are not making payments. This is problematic because your total balance and your monthly payments may be higher when you start making payments again.

For that reason, forbearance should be an option that you choose only if you are experiencing extreme hardship

Contacting MOHELA for Assistance

When it comes to repaying your MOHELA loans, communication is key, whether you have questions about making a payment or letting your servicer know that you are having financial trouble, having a direct channel to MOHELA can be extremely helpful.

You can call MOHELA at 888-866-4352, or even fax or mail them. If you have complaints about MOHELA, you can take advantage of their ombudsman program.

The ombudsman will assist you by resolving account disputes and working with you to solve your problems.

Student loans are valuable because they allow students to get an education that they might not otherwise be able to afford.

If MOHELA is your servicer, understanding their rules and repayment processes can help make paying for your education as stress-free as possible.

FAQs

1. How do I refinance my MOHELA student loans

Refinancing your MOHELA student loans involves taking out a loan with a private lender to pay off your current student debt.

Aside from potentially landing more favorable rates and terms, it is the only way to change your servicer if you have private student loans.

You will need to confirm that it is not with a lender that also uses MOHELA as its servicer.

Federal loan holders might want to think twice about refinancing, however. Most private establishments don’t offer the same benefits you can find with federal loans, such as income-driven repayment plans and forgiveness programs.

If you want to change your servicer, consider applying for a Federal Direct Consolidation Loan, which also allows you to choose the company that services your loan.

2. How to avoid common problems with MOHELA

Though MOHELA does not earn as many complaints as competing services, borrowers say they’ve run into issues with the company.

As of January 2019, more than 200 people have filed complaints with the Consumer Financial Protection Bureau (CFPB).

And while MOHELA earns an A+ from the Better Business Bureau (BBB), it earns a low 1-star rating based on 19 reviews. On top of this, 65 customers have filed a complaint with the BBB.

Borrowers complain about two common problems you’ll want to stay on top of.

3. How do I apply for deferment or forbearance with MOHELA?

If you have federal loans, complete and submit a form to MOHELA. The form you’ll need to complete depends on the type of deferment or forbearance you’re applying for.

Find a copy of the form by logging in to your account. Not sure which is right for you? MOHELA recommends reaching out to its customer service team to discuss your options.

4. How do I change my repayment plan with MOHELA?

Change your repayment plan for your federal loans by completing and submitting a form to MOHELA. Find the right form by logging in to your account or contacting customer service.

5. Where do I get my 1098-E interest deduction tax form from MOHELA?

You can download your 1098-E from your online account as soon as it’s available.

CSN Team.

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