Is MOHELA a Direct Loan Servicer?

MOHELA, short for Missouri Higher Education Loan Authority, is a loan servicer, not a lender. It manages federal student loans, including those from the Direct Loan Program, but it does not issue these loans. Instead, MOHELA handles billing, customer service, and other administrative tasks for loans issued by the U.S. Department of Education.

When you take out a federal student loan, the U.S. Department of Education issues the loan, and MOHELA may be assigned as your servicer. This means that while MOHELA does not provide the loan itself, it plays a crucial role in managing the loan once it has been disbursed.

Direct Loans are federal student loans made by the U.S. Department of Education. These loans include Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans. If MOHELA is servicing your loan, it is likely a Direct Loan or another type of federal loan, but MOHELA itself does not provide the loans.

To summarize:

• MOHELA is not a lender; it is a servicer.
• Direct Loans are issued by the U.S. Department of Education.
• MOHELA manages the servicing of these loans, handling tasks like processing payments and providing customer support.

Understanding this distinction is important for managing your student loans effectively. If you have any issues or questions about your loan payments, MOHELA would be your point of contact.