Loan Types
True/False: Unsubsidized loans do not accrue interest while the borrower is attending school at least half time, in grace, or while in deferment.
False. Unsubsidized loans accrue interest from the time the loans are disbursed and do not receive interest subsidy while the borrower is in school, in grace or while loans are on a deferment.
How are monthly payments calculated for Traditional Repayment Plans?
Monthly payments are calculated based on principle balance, interest rate and months to repay. These plans work to pay off the loans.
Name the forgiveness options are offered by the DOE?
TLF, PSLF and IDR forgiveness
What must we do to obtain the most up to date information in CLX?
Always retrieve Realtime!
How can we tell if a loan has been consolidated?
The loan type will show CNS
Examples: DLSCNS, DLUCNS, DLPCNS, SUBCNS or UNSCNS
Do Parent Plus loans accrue interest while the student is attending school at least half time?
Parent Plus loans begin accruing interest as soon as the loans are disbursed regardless of whether the student is in school.
What is important for borrowers to know about Graduated plans?
What should we advise a borrower inquiring about Biden loan forgiveness?
The U.S. Department of Education (ED) is working in partnership with colleagues at the U.S. Department of Justice and the White House to review options with respect to debt cancellation. This does not guarantee any action will be taken. If the president or ED announces any type of federal student loan cancellation, details about that announcement will be posted on StudentAid.gov/announcements and on official ED social media accounts, including ED’s Twitter account (@usedgov) and the Federal Student Aid Twitter (@FAFSA), Facebook (@FederalStudentAid), and Instagram (@federalstudentaid) accounts.
On which tab(s) can we find the borrowers due date?
Are we able to view the original schools attended or disbursements for consolidated loans?
No. Since consolidation creates a new loan we will not be able to view the schools attended for the loans prior to consolidation or the original disbursement dates.
Under what circumstances would a subsidized loan not accrue interest?
True/False: Standard Level plans may be extended out past 120 months if a borrower consolidates their loans?
True: Consolidation will allow a borrower to extend repayment as far as 30 years, so a level plan may have extended terms for consolidated borrowers.
A borrower has been receiving calls about loan forgiveness. What should we tell them?
We are aware 3rd party debt relief companies have been contacting borrowers and charging fees for federal student loan assistance. All options for loan forgiveness and consolidation are available for free through your loan servicer.
A borrower sent in an IDR application. Where can we view the application to confirm it was received and check the status?
Will opting out of the COVID forbearance cause a borrower to lose the 0% interest rate reduction?
No. DL borrowers will receive 0% interest rate through 8/31/2022, regardless of whether or not they are on the forbearance.
Why might a borrower only have unsubsidized loans, but no subsidized loans?
Subsidized loans are need based. Eligibility is determined when the borrower applies for Financial Aid by completing the FASFA application. The borrower may not have demonstrated a need for subsidized loans when completing the FASFA.
What information is important to provide borrowers considering going onto an IDR plan?
Can a borrower be on an IDR plan and apply for PSLF?
Yes. IDR plans are qualifying payment plans for PSLF.
A borrower has concerns about a letter they received. What tab can we view letters we sent to the borrower?
Documents – Outbound Correspondence
How do we request payment history for payments made with MOHELA? What is the processing time?
Arc Request E111Q
7-10 days to receive by mail
True/False: Parent Plus loans go into Grace once the student has separated/withdrawn/graduates/drops to LTHT?
False: Parent Plus loans are not eligible for a Grace period. However, Parent Plus borrowers can elect for a Post Enrollment Deferment for 6 months after the student has separated/withdrawn/graduates/drops to LTHT.
What IDR plan(s) are Plus loans eligible for? FFELP/Ed Held FFELP loans?
What should a Parent Plus borrower do if they want to apply for PSLF?
Plus borrowers should check employment eligibility using the PSLF Help Tool on studentaid,gov/pslf. If employer is eligible, the borrower should consolidate the Plus loans to be eligible for an ICR plan. This way payments count towards PSLF forgiveness and there is a balance left to be forgiven once 120 qualifying payments have been met.
Which tab can we view information about the type of deferment a borrower is on?
Deferment/Forbearance tab – Option History
How can we request payment history for payments made before MOHELA serviced the loan? What is the processing time?
IDQ – Loan Servicing – Miscellaneous – Pre-Conversion Payment History
Can take up to 30 calendar days to receive by mail; 21 days for IL borrowers