CHESTERFIELD 鈥 The Missouri Higher Education Loan Authority, a major student loan servicer, is warning borrowers to expect delays in the processing of applications from a limited expansion of a loan forgiveness program for public servants.
MOHELA issued the alert on Friday, warning of increased processing times for the Public Service Loan Forgiveness (PSLF) program as a result of the waiver, .
鈥淲e recognize that the impending loan forgiveness initiative, limited PSLF waiver ending and return to repayment start date are all creating anxiety and increased stress,鈥 MOHELA wrote in . 鈥淭his unprecedented situation is negatively impacting MOHELA鈥檚 high service standards, and we are challenged with circumstances beyond our control.鈥澛
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The PSLF program, created in 2007, requires borrowers to make 120 on-time monthly payments to have their remaining balance canceled.
The program has been criticized for its complexity and poor management, the Post said. In response, the Biden administration last year enacted a limited waiver, allowing social workers, teachers and other public servants to receive credit toward debt cancellation regardless of their type of federal loan or payment plan.
MOHELA services about $59 billion in federal direct loans as well as loans from the defunct Federal Family Education Loan program, according to court filings.