Mohela No Longer Dealing with PSLF or TEACH Starting in May

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  • Mohela No Longer Dealing with PSLF or TEACH Starting in May
Author: Joseph Reinke, CFA

Last night we got an update about the future of the PSLF and TEACH programs. Starting May 1, 2024, the management of the Public Service Loan Forgiveness (PSLF) and Teacher Education Assistance for College and Higher Education (TEACH) Grant programs will be transferred in-house to the Department of Education, moving away from the current loan servicer, MOHELA. This change aims to centralize and streamline the administration of these programs through, providing participants with a single platform for submitting forms, tracking progress, and accessing support.

A temporary pause in processing PSLF and TEACH Grant forms will be implemented during this transition, beginning May 1, 2024. This means participants will temporarily lose access to program progress, certified employment, or payment counts on the MOHELA borrower portal. It is recommended that all necessary records be downloaded from MOHELA by April 30, 2024.

Despite this pause, loan payments will continue as normal, and participants are encouraged to keep making payments to avoid delinquency. It’s also advised not to resubmit PSLF forms during the halt to prevent processing delays. Following the transition, loan servicing accounts may be moved to a new platform or servicer, and it’s crucial for participants to stay updated through MOHELA’s website.

The Department of Education’s move to directly manage these programs is part of a broader effort to make federal student aid more accessible and manageable, including the introduction of improved digital services like a new dashboard and a PSLF Help Tool, as well as the TEACH Form Wizard and digital certification processes expected to roll out in the fall of 2024.

Joseph Reinke, CFA

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About the Author

Joseph Reinke is a Chartered Financial Analyst (CFA) Charter Holder and founder of FitBUX which has helped over 14,000 young professionals on their journey to financial freedom. Joseph has been personally investing since he was 12 years old.

In addition, he has experience in student loans, mortgages, wealth management, investment banking, valuation, stock trading, and option trading. He has been on 100s of podcast and has been invited to 100s of universities to discuss financial planning with their soon to be graduates.

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