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Your Top Student Loan Questions Answered: What if my loan is transferred to a new servicer?

Recently, the Department of Education (ED) announced that MOHELA will be transferring their federal student loan accounts to other federal student loan servicers. Borrowers should receive communication about the transfer from MOHELA and their new servicer. According to the Student Loan Protection Center, more than 824,000 Californians are eligible for public service loan forgiveness.

What if my loan is transferred to a new servicer?

Upon receiving confirmation of a loan transfer, borrowers should:

  • Establish an online account with their new servicer and save the new servicer’s information.
  • Provide any changes in their contact information to their new servicer.
  • Make any changes necessary to direct federal student loan payments to their new servicer, such as banking information or auto-payment settings.
  • Ensure that StudentAid.gov has your updated contact information.

As with any transfer, I encourage borrowers to print or download all PSLF-related forms and account history while they have access to their MOHELA accounts. Once transferred, I also encourage borrowers to review their information, including PSLF counts and balances, to ensure a smooth transition. As a reminder, the California Student Borrower Bill of Rights, protects borrowers from any negative consequences stemming from a sale, assignment, transfer, system conversion, or payment made by the borrower to the original student loan servicer. If you have any issues as a result of these transfers or changes, you are encouraged to submit a complaint to us.