Mohela Borrowers Must Reapply for Income-Driven Repayment Plans

If Mohela is your student loan servicer, recent changes mean you may need to reapply for your income-driven repayment (IDR) plan. This update affects borrowers who submitted IDR applications before April 27, 2025, because those applications did not include income information and were automatically canceled.

This requirement also applies if you are enrolled in an IDR plan like SAVE and applied to change plans before April 27, 2025. However, if you applied for an IDR plan after this date, you do not need to reapply.

During the processing of your new application, your loans may be placed into a temporary forbearance, providing relief while your repayment plan is updated.

The pause in processing IDR plans stems from legal challenges around the Saving on a Valuable Education (SAVE) plan. Processing was halted last year and briefly again in early 2025, causing confusion and delays for many borrowers.

To check if Mohela is your servicer, log in to your Federal Student Aid account at StudentAid.gov. This portal shows your loan details, repayment status, and servicer information.

Resubmitting your IDR application is straightforward. Visit StudentAid.gov’s IDR plan request page, log in, and follow prompts to apply or recertify. You'll confirm personal details, provide income proof, and select an eligible repayment plan.

While the SAVE plan is currently paused, borrowers don’t need to switch plans immediately. Experts suggest using this time to explore other IDR options like the income-based repayment or Pay As You Earn plans, especially if you aim for Public Service Loan Forgiveness.

If you’re enrolled in PSLF and close to reaching your 120-payment goal, consider the PSLF buyback program, which may help you complete payments required for loan forgiveness without switching IDR plans.

Navigating Student Loan Repayment Changes

The evolving landscape of student loan repayment plans can feel like a maze. Between legal pauses, servicer updates, and plan cancellations, staying informed is key to managing your debt effectively.

By regularly checking your servicer status and promptly resubmitting IDR applications when required, you can avoid unexpected payment increases or loss of benefits. Tools like the FSA loan simulator help you compare plans and choose the best fit for your financial situation.

Remember, the goal of income-driven repayment plans is to make student loan payments manageable based on your income and family size. Taking the time to ensure your application is accurate and up-to-date can save you money and stress in the long run.