Higher Education Loan Authority of the State of Missouri

The Higher Education Loan Authority of the State of Missouri, also known as the Missouri Higher Education Loan Authority or MOHELA, is one of the largest holders and servicers of student loans in the United States. Its headquarters are in St. Louis, Missouri. Created in 1981 as a quasi-governmental entity, MOHELA participated in the Federal Family Education Loan Program (FFELP) for nearly three decades.

Higher Education Loan Authority of the State of Missouri
TypeQuasi-governmental
IndustryStudent loans
FoundedJune 15, 1981 (1981-06-15)
HeadquartersChesterfield, Missouri, U.S.
OwnerState government of Missouri
Number of employees
625 (2013)
Websitewww.mohela.com

Controversies

Several complaints from borrowers have been made about loan-handling during and after the switch to MOHELA, with their complaining of charges for late payments due to delayed processing of those made to the Department of Education before the transfer, suspension of auto-payment programs, increased payment amounts, lengthened estimated repayment-dates, changes to the borrower's selected repayment plan, unwanted forbearances and deferments, failure to process forms, and applied or capitalized interest.[1][2]

MOHELA has a 1.01 star rating from the Better Business Bureau.[3]

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.[4][5] The Supreme Court ultimately decided that it could, citing Arkansas v. Texas (1953) and Lebron v. National Railroad Passenger Corp.[6]

Types of student loans owned or serviced by MOHELA
See also: funding of higher education in the United States

These include:

References
  1. Deckelmann, Selena (February 23, 2012). "Student Loan Sharks: Mohela is shady (but the CSR I talked to was really nice)". Chesnok. Retrieved July 9, 2021.
  2. Rasberry, Shannon (May 3, 2012). "Federal Student Loan Servicer Transition Leaves Borrowers Lost in the Shuffle". Student Loans Blog. Archived from the original on December 13, 2012. Retrieved November 29, 2012.
  3. "MOHELA". Better Business Bureau. Retrieved December 6, 2022.
  4. Sheffey, Ayelet. "A student-loan company that took over public servants' accounts is involved in one of the first major lawsuits against Biden's debt cancellation". Business Insider. Retrieved December 6, 2022.
  5. "Missouri's student loan corporation could help doom Biden's debt relief plan". NBC News. Retrieved May 5, 2023.
  6. Biden v. Nebraska (Supreme Court 2023).Text
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