Temporary Suspension Announced for Student Loan Forgiveness Programs amid Departmental Transition

Student loan forgiveness programs such as Public Service Loan Forgiveness (PSLF) and Teacher Education Assistance for College and Higher Education (TEACH Grant) will temporarily pause starting May 1, as the Department of Education takes over management from contractor MOHELA. The transition is expected to last until July and affects around two million borrowers enrolled in PSLF and TEACH Grants. Borrowers’ payment counts and other information can currently be found on MOHELA’s website but will soon be available at the Federal Student Aid office instead after completion of the transition phase, during which payments are still required though not immediately reviewed by staff upon receipt as processing is delayed due to shifting operations in-house. Borrowers may request forbearance from their servicer if they wish to avoid making additional monthly installments until July when payment counts and progress updates become accessible through StudentAid.gov, where borrowers can also call the Department of Education’s contact center directly with any PSLF queries as processing times are said to be faster after completion of this temporary break that started from May 1 up to Fall in 2024 for TEACH Grants.