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Department Of Education Set To Manage PSLF Program Directly

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PSLF To Be Managed By Department of Education

Key Points

  • Department of Education To Manage PSLF And TEACH Grants. Both programs will be managed directly through StudentAid.gov, moving away from the MOHELA loan servicer. 
  • Processing Pause: There will be a temporary halt in processing PSLF and TEACH Grant forms during the transition, affecting access to program progress and form submission.
  • Enhanced Digital Services: Post-transition, participants will benefit from enhanced digital services, including a new dashboard and a PSLF Help Tool, designed to simplify and expedite the submission process.

Starting May 1, 2024, the Public Service Loan Forgiveness (PSLF) and Teacher Education Assistance for College and Higher Education (TEACH) Grant programs are undergoing significant operational changes.

The Department of Education announced that they will migrate the administration of the programs in-house and away from MOHELA. However, your loans will remain with a loan servicer who will handle payment processing and other loan-specific administrative tasks.

Streamlined PSLF Management

With a goal to streamline the management of the PSLF and TEACH Grant programs, the Department of Education is consolidating these services within StudentAid.gov. 

Starting in May 2024, applicants and current participants will submit forms, track their program progress, and access support all in one place. This move to centralize operations is anticipated to simplify the application and management process for both programs significantly.

Currently, the programs are handled by MOHELA, but still require the Department of Education to finalize and approve many things. For example, when borrowers hit 120 qualifying payments for PSLF, their loan information is sent to the Department of Education from MOHELA, who then sign off on the forgiveness, and in turn send the information back to MOHELA to process the forgiveness.

These steps will hopefully be eliminated with the in-house management.

Temporary Halt In Processing

A big impact of this transition is a temporary pause in processing forms for both PSLF and TEACH Grants starting May 1, 2024.

For PSLF participants, this means a temporary inability to access progress, certified employment, or payment counts on the previous MOHELA borrower portal. Participants are advised to download any necessary records from MOHELA by April 30, 2024, before the pause begins.

Although this halt may present a temporary inconvenience, it is a necessary step towards a more integrated and efficient system.

Recommendations Moving Forward

During the transition, loan payments will continue as usual, and participants are encouraged to keep making payments to avoid delinquency.

For those submitting PSLF forms during the pause, it's important not to resubmit in July as this could delay processing. Additionally, loan servicing accounts may be transferred to a new platform or servicer post-transition, and participants should stay informed about their account status through MOHELA’s website.

The TEACH Grant Program will also see significant improvements into the fall of 2024, with the introduction of the TEACH Form Wizard and digital certification processes. These enhancements are part of the Department of Education's broader initiative to make federal student aid more accessible and manageable for participants.

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Editor: Colin Graves

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