Mohela account in good standing message explained

Your MOHELA account being in good standing is a positive sign! It means that your account has no negative payment history, and you are meeting your loan obligations, and haven’t missed any payments.

If you have any concerns or need assistance, we recommend reaching out to MOHELA directly through their website here. They can provide further details about your account status and help you keep it in good standing. Remember that maintaining good standing is essential for your financial well-being!

For specific information related to your account, you can log in to your Federal Student Aid account or contact MOHELA at 1-800-4-FED-AID¹. They’ll be able to assist you with any questions you might have.

What to note

This message means that your account with MOHELA is currently in good standing with a zero balance. What this means that you have no outstanding payments or debts.

Having a MOHELA account in good standing can lead to potential benefits, such as being eligible for lower interest rates on your loans. This could result in significant savings over the duration of your loan.

Various factors, such as your credit score, loan type, and repayment term length, influence the interest rate you receive. Generally, a good credit score and a shorter repayment term increase your chances of qualifying for a lower interest rate.

MOHELA provides different repayment options, including standard, graduated, and extended plans, each affecting your interest rate differently. Standard plans typically offer the lowest rates, while extended plans usually come with higher rates.

If you’re facing difficulties with your monthly payments, you might qualify for a reduced interest rate through loan consolidation or refinancing. Consolidation merges multiple loans into one with a lower rate, while refinancing replaces your current loan with a new one at a reduced rate.

To determine your eligibility for lower interest rates, reach out to MOHELA or your loan servicer.

Benefits of your MOHELA account being in good standing

• Revised Pay As You Earn (REPAYE) Plan: Your monthly payments are limited to 10% of your discretionary income, and any remaining balance is forgiven after 20 years of payments.
• Pay As You Earn (PAYE) Plan: This plan also limits your monthly payments to 10% of your discretionary income, and any remaining balance is forgiven after 20 years of payments.
• Income-Based Repayment (IBR) Plan: With this plan, your monthly payments are capped at 15% of your discretionary income, and any remaining balance is forgiven after 25 years of payments.
• Income-Contingent Repayment (ICR) Plan: This plan sets your monthly payments at 20% of your discretionary income, but there is no loan forgiveness available under this plan.
• The SAVE plan: This plan provides the lowest monthly payment of any income-driven repayment plan available to nearly all student borrowers.

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