FedLoan Services: What Happened and Where Your Loans Went

FedLoan Servicing was one of the major players in the federal student loan servicing world. Operated by the Pennsylvania Higher Education Assistance Agency (PHEAA), FedLoan handled everything from monthly billing to processing income-based repayment plans.

But here’s what made FedLoan special: they were the exclusive servicer for the Public Service Loan Forgiveness (PSLF) program. If you were working toward loan forgiveness through public service employment, your loans were with FedLoan. Period.

For years, FedLoan processed millions of payments, tracked qualifying employment, and helped borrowers navigate the complicated world of federal student loans. They weren’t perfect—customer service wait times could stretch for hours, and processing errors made headlines—but they were a familiar face in an already confusing system.

Why Did FedLoan Servicing Shut Down?

In 2021, PHEAA dropped a bombshell: they wouldn’t be renewing their contract with the U.S. Department of Education. By December 2022, FedLoan officially stopped servicing federal student loans.

So what happened? It wasn’t one single reason. The company cited the increasingly complex regulatory environment and the mounting costs of staying compliant with ever-changing federal student loan policies. Translation: the juice wasn’t worth the squeeze anymore.

Managing federal student loans has become a minefield of rules, exceptions, and political scrutiny. Between temporary payment pauses, forgiveness programs, and borrower advocacy groups watching every move, servicing companies found themselves under intense pressure. PHEAA decided it was time to exit stage left.

Where Did Your FedLoan Account Go?

Most borrowers who had accounts with FedLoan Servicing were transferred to MOHELA (Missouri Higher Education Loan Authority). This wasn’t a random choice—MOHELA took over as the exclusive servicer for PSLF, stepping into FedLoan’s old shoes.

The Department of Education sent out notices via email and snail mail to affected borrowers. If you missed those notifications (and let’s be honest, who reads every piece of mail these days?), you can check your current servicer by logging into your Federal Student Aid account at studentaid.gov.

Here’s what transferred over:

• Your loan balance (down to the penny)
• Your payment history
• Your chosen repayment plan
• Your PSLF qualifying payment count (if applicable)
• Your contact information

What changed:

• Your servicer’s website and login portal
• Customer service phone numbers
• Where you send payments
• Your account interface

Think of it like your favorite coffee shop getting bought out. The coffee’s the same, the prices haven’t changed, but there’s a new logo on the cup and different baristas behind the counter.

How to Access Your Account Now

Step one: stop trying to log into FedLoanServicing.org. That website is basically a digital ghost town at this point.

Here’s your new game plan:

Check Your Federal Student Aid Dashboard

Head to studentaid.gov and log in with your FSA ID. This is your home base for all federal student loan information. You’ll see your current loan servicer listed front and center, along with your total loan balance and loan details.

Create a MOHELA Account

If your loans transferred to MOHELA (which is likely), visit MOHELA.com and create a new account. You’ll need your Social Security number, date of birth, and some loan information to verify your identity.

Update Your Payment Method

If you had automatic payments set up with FedLoan, those didn’t carry over. You’ll need to re-enroll in autopay through MOHELA. Pro tip: autopay often comes with a 0.25% interest rate reduction, so it’s worth setting up again.

Check Your Inbox

Seriously, dig through those old emails. MOHELA sent detailed instructions about the transfer process, including temporary payment pauses during the transition. You don’t want to accidentally miss a payment because you didn’t get the memo.

What About PSLF? Did That Transfer Too?

Yes—and this is crucial for anyone working toward loan forgiveness. The PSLF program didn’t disappear when FedLoan shut down. MOHELA now manages PSLF tracking, employment certification, and forgiveness applications.

Your PSLF progress is safe. All those qualifying payments you made under FedLoan? They transferred to MOHELA’s system. You can view your updated payment count by logging into your MOHELA account or your Federal Student Aid dashboard.

But here’s what you need to do:

1. Verify your payment count. Log in and make sure your qualifying payments transferred correctly. Errors happen, especially during massive data migrations.
2. Submit employment certification forms regularly. Don’t wait until you hit 120 payments to certify your employment. Submit the form annually or whenever you change jobs to keep your records current.
3. Stay informed about the consolidation process. If you’re considering consolidating your loans, understand how it affects your PSLF timeline.
4. Document everything. Keep copies of employment certification forms, payment records, and correspondence with MOHELA. If there’s ever a dispute, paper trails are your best friend.
   

The PSLF program has had its share of headaches—processing delays, confusing requirements, and rejected applications. But recent improvements have made the program more borrower-friendly. The limited PSLF waiver (which ended in October 2022) helped thousands of borrowers get credit for previously ineligible payments.

Did Your Repayment Plan Change?

Short answer: no. Your repayment plan stayed exactly the same during the transfer from FedLoan to MOHELA.

If you were on an income-driven repayment plan, you’re still on that plan. If you had a standard 10-year repayment schedule, that didn’t change either. Your monthly payment amount, due date, and loan terms all remained intact.

However—and this is important—you’ll need to recertify your income if you’re on an income-driven plan.

These plans require annual income verification to calculate your payment amount. Missing that recertification deadline can bump you back to the standard repayment plan, which might come with a much higher monthly payment.

MOHELA sends reminders when your recertification is due, but set your own calendar reminder too. Life gets busy, emails get lost, and nobody wants to deal with a surprise $600 monthly payment when they were expecting $150.

What If There’s a Problem with Your Account?

Mistakes happen. Data doesn’t always transfer perfectly from one system to another. If you spot an error—wrong loan balance, missing payments, incorrect interest rate—act fast.

Your action plan:

Contact MOHELA immediately. Don’t wait and hope it fixes itself. Call customer service or use their online contact form to report the issue. Get a reference number for your inquiry.

Check your Federal Student Aid account. Sometimes the issue is just a display problem on the servicer’s website. Your FSA account pulls data directly from the Department of Education and might show accurate information.

Escalate if necessary. If MOHELA isn’t resolving your issue quickly enough, you can contact the Federal Student Aid Ombudsman Group. They’re the neutral third party that helps resolve disputes between borrowers and servicers.

Document everything. Save emails, take screenshots, write down the names of customer service reps you speak with, and note dates and times of calls. If you need to escalate, this documentation becomes essential.

One common issue during the FedLoan-to-MOHELA transfer was payment history discrepancies. Some borrowers found that payments made during the transition period weren’t properly credited. If this happened to you, you have the right to get it corrected.

Will This Transfer Affect Your Credit Score?

Nope. Changing loan servicers doesn’t impact your credit score at all. It’s not like closing a credit card or opening a new loan account.

Your payment history—the most important factor in your credit score—continues uninterrupted under your new servicer. As long as you keep making on-time payments, your credit stays healthy.

Here’s what shows up on your credit report:

• Your loan accounts (which remain the same)
• Your payment history (which transfers intact)
• Your total debt amount (unchanged)

What doesn’t show up:

• The servicer change itself
• Any temporary account closures during the transition
• The transfer process

That said, missing payments during the confusion of switching servicers would hurt your credit. Make sure you know where to send payments and when they’re due. Set up autopay if possible to avoid any accidental late payments.

If you’re worried about managing debt alongside student loan payments, you’re not alone. Many borrowers juggle multiple financial obligations while trying to stay on top of loan repayments.

FedLoan’s Legacy: What Borrowers Should Remember

FedLoan Servicing is gone, but its impact on the student loan landscape lingers. For better or worse, the company processed billions in student loan payments and helped (or hindered, depending on who you ask) thousands of borrowers through the PSLF program.

The good: FedLoan handled a massive portfolio of loans and managed the complex PSLF program when no other servicer wanted to touch it. They processed countless forgiveness applications and helped public service workers eliminate their debt.

The bad: Customer service complaints were legendary. Borrowers reported hours-long wait times, lost paperwork, and confusing communications. PSLF rejection rates were sky-high, partly due to program complexity and partly due to servicing errors.

The lesson: The federal student loan servicing system needs serious work. When a major servicer can just walk away, leaving millions of borrowers scrambling, something’s broken. Hopefully, the transition to MOHELA and other servicers will improve the borrower experience.

What New Borrowers Need to Know

If you’re taking out federal student loans today, you won’t be assigned to FedLoan Servicing. The Department of Education now works with several servicers, including:

• MOHELA
• Nelnet
• Aidvantage
• EdFinancial
• OSLA Servicing

You don’t get to choose your servicer—the Department of Education assigns you based on their internal distribution system. But here’s the good news: servicers must follow the same federal rules and offer the same repayment options. Whether you’re with MOHELA or Nelnet shouldn’t dramatically change your borrowing experience.

Smart moves for new borrowers:

• Understand your repayment options before graduation
• Keep your contact information updated with your servicer
• Track your own loan balances and payments (don’t rely solely on your servicer)
• Learn about loan forgiveness programs early if you’re heading into public service

Managing Your Student Loans After the FedLoan Transition

Now that the dust has settled, it’s time to take control of your student loan situation. Whether you’re with MOHELA or another servicer, these strategies will help you stay on track:

Review your loans regularly. Log into your account at least quarterly to check your balance, review payment history, and make sure everything looks correct.

Understand your repayment terms. Know your interest rate, repayment period, and what type of loans you have (subsidized vs. unsubsidized, undergraduate vs. graduate).

Explore repayment options. Income-driven repayment plans can lower monthly payments significantly if you’re struggling financially. Don’t suffer in silence—options exist.

Consider extra payments strategically. If you have multiple loans with different interest rates, target the highest-rate loans first while making minimum payments on the others. Or, if you’re working toward PSLF, don’t make extra payments—you want to pay as little as possible before forgiveness.

Stay informed about policy changes. Student loan rules change frequently. The payment pause during COVID, new forgiveness programs, and regulatory updates can all affect your strategy. Follow reliable sources like the Federal Student Aid website for official announcements.

For borrowers dealing with multiple types of debt, understanding different repayment strategies becomes crucial. Student loans are just one piece of your financial puzzle.

Common Questions About Life After FedLoan

Can I still make payments during the servicer transfer? During the actual transfer period, you typically don’t make payments. Both FedLoan and your new servicer will notify you when to resume. Those months usually don’t count against you—interest doesn’t accrue, and you won’t be reported as delinquent.

What if I never received transfer notification? Check your Federal Student Aid account at studentaid.gov. Your current servicer will be listed there, along with their contact information. You can call them directly to set up your account.

Do I need to reapply for income-driven repayment? Your existing income-driven repayment plan transfers with your loans, but you’ll need to recertify your income annually as usual. Don’t skip this step, or you’ll be moved to standard repayment.

Will my autopay discount carry over? Probably not automatically. You’ll need to re-enroll in autopay with your new servicer to get the 0.25% interest rate reduction. It’s a minor hassle, but worth it for the savings and peace of mind.

Can I switch servicers if I don’t like MOHELA? Unfortunately, no. You can’t choose your federal student loan servicer. The Department of Education assigns servicers, and borrowers don’t have the option to switch based on preference.

Resources for Student Loan Borrowers

Managing student loans doesn’t have to feel like navigating a maze blindfolded. Here are legitimate resources to help:

Federal Student Aid (studentaid.gov) – Your official source for everything federal student loans. Check your loan details, find your servicer, and get answers straight from the Department of Education.

MOHELA (mohela.com) – If your loans transferred from FedLoan, this is likely your new home base. Create an account, set up payments, and track your PSLF progress.

Student Loan Ombudsman – If you’re having issues with your servicer that aren’t getting resolved, the ombudsman can help. Visit studentaid.gov/feedback-ombudsman.

Consumer Financial Protection Bureau (CFPB) – Offers guides and tools for understanding student loans, plus a complaint portal if you’re having serious issues with your servicer.

Don’t fall for student loan scam companies promising instant forgiveness or secret repayment hacks. If someone asks for an upfront fee to “help” with your student loans, run. Legitimate help is available for free through official channels.

The Bottom Line

FedLoan Servicing is history, but your student loans aren’t going anywhere. The good news? The transition to MOHELA and other servicers is complete for most borrowers, and the system is stabilizing.

Your mission: verify your account transferred correctly, set up autopay with your new servicer, and keep tracking your progress toward payoff (or forgiveness). The servicer might have changed, but your ultimate goal hasn’t—get these loans paid off and move on with your life.

Student loans can feel overwhelming, especially when your servicer suddenly changes without warning. But you’re not alone in this. Millions of borrowers are navigating the same transition, asking the same questions, and figuring out the same systems.

Stay informed, keep detailed records, and don’t be afraid to ask for help when you need it. Your financial future depends on staying on top of these loans, and that starts with understanding where they are and how to manage them effectively.

Need more guidance on managing your finances? Check out Wealthopedia for expert advice on loans, debt management, and building wealth.

Table: FedLoan Services vs. MOHELA Comparison

Remember: Your federal student loans are backed by the U.S. Department of Education. The servicer is just the middleman handling paperwork and payments. The terms of your loans haven’t changed—only the company you’re dealing with has shifted. Keep making those payments, stay on top of deadlines, and you’ll navigate this transition just fine.