(GRANTS-22-08) Teacher Education for College and Higher Education Grant Program Transitioning from FedLoan Servicing to MOHELA (Updated Dec. 14, 2022)

Author
Federal Student Aid
Electronic Announcement ID
GRANTS-22-08
Subject
Teacher Education for College and Higher Education Grant Program Transitioning from FedLoan Servicing to MOHELA (Updated Dec. 14, 2022)

Note

Dec. 14, 2022 Update: We completed the transfer of all TEACH borrowers from FedLoan Servicing to MOHELA. Borrowers should have received notice of the completion of their account transfer to their new servicer. Additionally, FedLoan Servicing’s contract with us has ended. If borrowers have any questions about their student loan account, including specific questions regarding TEACH, they should now contact MOHELA.

Aug. 22, 2022 Update: We revised the second paragraph under What should program participants expect during this transition? to accurately reflect the notifications a TEACH participant will receive.

Aug. 10, 2022 Update: We revised Q3 and A3 under the Important Questions and Answers for TEACH Grant Program Participants section of this announcement.

On Sept. 15, 2022, Federal Student Aid (FSA) will transfer the Teacher Education for College and Higher Education (TEACH) Grant Program, participant accounts, and their grants and loans (if applicable) from FedLoan Servicing to MOHELA. This change is required because FedLoan Servicing announced it will stop servicing federal student grants and loans when its contract ends. Servicer transfers typically take ten business days to complete, so TEACH Grant Program participant accounts should be available at mohela.com by the end of September 2022.

Note: This change will not impact the existing terms and conditions of the TEACH Grant Program. If your grant converts to a Direct Unsubsidized Loan, this change will not affect the available interest rates, loan discharge or forgiveness programs, or available repayment plans on the loans.

For the most up to date information regarding this transition please visit StudentAid.gov/fedloan.

What should program participants expect during this transition?

All TEACH Grant Program participant accounts are expected to transfer from FedLoan Servicing to MOHELA, except for the accounts of those who have satisfied all service obligations. FedLoan Servicing will continue to service TEACH Grant Program participants on its system until the accounts are transferred later this year.

TEACH Grant Program participants can expect to receive three notices as their accounts are transferred so they may monitor their transfer progress. First, FSA will send an email to all current TEACH Grant Program participants at FedLoan servicing in August informing them of this transfer and what to expect. Next, program participants will receive a notice of transfer from FedLoan Servicing at least 15 days before the transfer occurs followed by a welcome notice from MOHELA once the transfer is complete.

Important Questions and Answers for TEACH Grant Program Participants

A1: No. FedLoan Servicing will forward to MOHELA any form, application, or request that is being processed at the time of transfer. 

A2: Yes. MOHELA will be sending reminders in October. MOHELA will send additional reminders in November and December if you are running out of time to complete your obligation.

A3: You can send your form at any time after you have completed an academic year of qualifying teaching service, BUT we recommend waiting to submit this form until after you have received your MOHELA welcome letter. At that point, you can create your new online MOHELA account and submit your certification form.

A4: Yes. This information will be available on your MOHELA account after the servicer transfer.

Contact Information

If you have general questions about the information in this announcement, contact:

  • The Federal Student Aid Information Center (FSAIC) at 1-800-4FEDAID,

  • FedLoan Servicing at 1-800-699-2908, or

  • MOHELA at 1-888-866-4352.

Last Modified: 12/14/2022