Higher Education Loan Authority of the State of Missouri

Following the abolition of the FFELP program in 2010, MOHELA began to expand its business, overseeing around 6.7 million student loan borrower accounts as of 2022.

[2] In June 2020, the DOE announced that MOHELA was one of five servicers that would help oversee the federal student loan portfolio in order to bring “enhanced customer support”.

Under the program, eligible public servants, including social workers and teachers, are able to have their debt cancelled after 10 years of service and 120 loan payments made on-time.

[13] Student loan borrowers eligible for PSLF relief have filed suit against MOHELA, accusing the servicer of delaying the cancellation of their debt and forcing them to make additional payments.

[16] Whether the state of Missouri could sue on behalf of MOHELA, which itself declined to get involved in the lawsuit, to block U.S. President Biden's student loan forgiveness executive order was one of the main issues in the Supreme Court case on the matter.

[1] The Supreme Court ultimately decided that it could sue on behalf of MOHELA in Biden v. Nebraska, citing Arkansas v. Texas (1953) and Lebron v. National Railroad Passenger Corp. (1995)[19] In October 2023, the Department of Education announced it would penalize MOHELA for failing to send billing statements on time to 2.5 million student borrowers, whose payments resumed that month following a forbearance period that begun in 2020.

[9][20] In December 2023, a pair of student borrowers filed suit against MOHELA for its alleged mismanagement of the Public Service Loan Forgiveness (PSLF) program.