What Mohela is and where your payment goes

Mohela (Missouri Higher Education Loan Authority) is a loan servicer that manages federal student loans on behalf of the U.S. Department of Education. When you make a payment to Mohela, you are paying down a federal student loan that Mohela services — not paying Mohela itself. The payment reduces the balance on your loan and counts toward your repayment plan.

Mohela services loans for borrowers across all 50 states. Your loan may have been assigned to Mohela when you first borrowed, or it may have been transferred to Mohela from another servicer. You can confirm that Mohela services your loan by logging into your account on the Mohela website or by checking the loan details in your Federal Student Aid account at studentaid.gov.

Key Takeaways

  • You can pay Mohela online through your account, by phone at 1-855-566-4353, by mail, or through automatic deduction from your bank account.
  • Payments made to Mohela are applied to your loan balance and count toward your repayment plan, whether you are on an income-driven plan or the standard 10-year plan.
  • If you are in a period of deferment or forbearance, you can still make voluntary payments, though interest may continue to accrue depending on your loan type.
  • Mohela does not charge a fee for making a payment, but some payment methods (such as third-party payment processors) may charge their own fees.

Payment methods Mohela accepts

Mohela offers four main ways to send a payment. The fastest and most direct is through your Mohela online account at mohela.com. Log in, select the loan you want to pay, enter the amount, and choose your payment date. Payments made online typically post within one business day.

You can also pay by phone by calling Mohela's customer service line at 1-855-566-4353. A representative will take your payment information and process the payment over the phone. Phone payments are available Monday through Friday, 8 a.m. to 8 p.m. Eastern Time.

If you prefer to mail a check or money order, send it to the address listed on your loan statement or on the Mohela website. Include your loan account number on the check. Mail payments take longer to post — typically 7 to 10 business days from the date Mohela receives them.

You can also set up automatic payments, called autopay, so that a fixed amount is deducted from your bank account on a date you choose each month. Enrolling in autopay through Mohela may lower your interest rate by 0.25 percent, depending on your loan type and repayment plan.

How payments are applied to your loan

When you make a payment to Mohela, the money is applied first to any fees owed, then to accrued interest, and finally to the principal balance of your loan. This order is set by federal law and applies to all federal student loan servicers.

If you are on an income-driven repayment plan, your monthly payment amount is calculated based on your income and family size. Payments you make count toward the number of payments required under your plan. If you make extra payments beyond your monthly obligation, the extra amount goes directly to reducing your principal balance.

Payments are posted to your account based on the method you use. Online and phone payments typically post within one business day. Automatic payments post on the date you select. Mail payments take 7 to 10 business days. You can check the status of a payment in your Mohela account at any time.

Payment during deferment and forbearance

If your loans are in deferment or forbearance, you are not required to make a payment. However, you can choose to pay voluntarily at any time. Voluntary payments reduce your loan balance and can help you pay off the loan faster.

Be aware that interest continues to accrue on most federal loans during deferment and forbearance, even if you do not make a payment. If you make a voluntary payment during these periods, the payment is applied to accrued interest first, then to principal. Making payments during deferment or forbearance can prevent your loan balance from growing due to unpaid interest.

What happens if you miss a payment

If your payment is due and you do not make it, your loan enters a period called delinquency. A payment is considered late if it is not received by the due date shown on your statement. Mohela will report the delinquency to credit bureaus, which can lower your credit score.

After 90 days of delinquency, your loan may be reported as in default to the U.S. Department of Education. Default can result in wage garnishment, tax refund offset, and loss of may be able to access for future federal student aid. If you are having trouble making a payment, contact Mohela before the payment is due to discuss your options, which may include a temporary pause in payments or a change to your repayment plan.

Payment plans and how they affect your payment amount

Your monthly payment amount depends on which repayment plan your loan is on. The Standard Repayment Plan requires a fixed payment over 10 years. Income-driven plans — Revised Pay As You Earn (REPAYE), Pay As You Earn (PAYE), Income-Based Repayment (IBR), and Income-Contingent Repayment (ICR) — calculate your payment based on your discretionary income and family size.

You can change your repayment plan at any time by logging into your Mohela account or contacting Mohela directly. Changing your plan may lower or raise your monthly payment, but it does not change the total amount of interest you will pay over the life of the loan. If you switch to a plan with a lower monthly payment, you will pay more interest overall because the loan will take longer to repay.

Frequently Asked Questions

Can I pay more than my monthly payment amount?

Yes. Any amount you pay above your required monthly payment goes directly to reducing your principal balance. Paying extra can shorten the time it takes to repay your loan and reduce the total interest you pay. There is no penalty for paying extra or paying off your loan early.

Does Mohela charge a fee to make a payment?

Mohela itself does not charge a fee for payments made through its website, by phone, by mail, or through autopay. However, if you use a third-party payment processor or credit card to pay, that processor may charge its own fee. Paying directly through Mohela avoids these fees.

How do I know if my payment was received?

Log into your Mohela account at mohela.com and check your payment history. You can see the date each payment was received and how it was applied to your loan. Online and phone payments typically post within one business day. Mail payments take 7 to 10 business days. If a payment does not appear after that time, contact Mohela.

What if I want to pause my payments?

You cannot straightforward stop paying without consequences. However, you may be able to pause payments through deferment or forbearance if you meet the requirements, or you can change to an income-driven plan that may lower your payment to $0 based on your income. Contact Mohela to discuss which option fits your situation.

Can I make a payment if my loan is in default?

Yes, you can make payments on a loan in default. However, to get your loan out of default, you must either pay the full amount owed in a lump sum, rehabilitate the loan by making nine on-time monthly payments over 10 months, or consolidate the loan into a Direct Consolidation Loan. Contact Mohela to discuss which path is available to you.