MOHELA Student Loan Moila Student Loans Overhaul: Critical Changes You Need to Know Now

Hey All, Big Changes with Moila Student Loans

Introduction:

• What You Should Know: Moila is completely changing their backend operating system.

Moila's Transition to a New System:

• Old System: The previous system, known as the Compass system, was built off something owned by FedLoan or FIA.
• New System: Moila is transitioning to the CLASS system, used by servicers like Advantage and EdFinancial.
• Why This Matters: While standardizing systems sounds good, there are significant risks during this transition.

Types of Transfers:

• Transfer 1: Moving to Mo. StudentAid.gov
  • New Account Setup: Most Moila borrowers need to set up a new account on Mo. StudentAid.gov.
  • Potential Risks: Issues like double-counting loans or incorrect payment histories might occur.
  • What to Do: Check your payment amount, IDR recertification date, and credit score after the transition.
• Transfer 2: Moila to EdFinancial
  • Department of Ed’s Strategy: They aim for balanced borrower accounts among the big four servicers.
  • PSLF Impact: Even if you’re moved to EdFinancial, you can still qualify for PSLF, but Moila will no longer handle it.

The Non-Transfer Transfer:

• PSLF Responsibilities: All PSLF management is moving directly to the Department of Ed's website.
• Impact on Borrowers: Future PSLF applicants won’t need to rely on a specific servicer.

Concerns with the Transition:

• Lack of Experience: Most servicers lack experience with managing active repayment loans.
• Pandemic Impact: Institutional knowledge has been lost due to the pandemic pause.

What to Do If You Encounter Problems:

• File a Complaint: Use the Federal Student Aid (FSA) complaint system if something goes wrong.
• Stay Informed: Follow Student Loan Planner for more tips.

Conclusion:

• Get Involved: Share this video, subscribe, and leave comments to help demystify student loans.