ST. LOUIS, MO--(Marketwire - Oct 24, 2012) - More than thirty years ago, the Higher Education Loan Authority of the State of Missouri (MOHELA) was created through Missouri law. Throughout the years, MOHELA primarily originated and serviced loans through the Federal Family Education Loan Program (FFELP) and its own private loans. Enactment of the Health Care and Education Reconciliation Act of 2010 and Student Aid and Fiscal Responsibility Act of 2009 ended FFELP, and MOHELA identified a need to dramatically reengineer its business model. MOHELA refocused its efforts on becoming a federal loan servicer and received the first Not-For-Profit Servicer Program contract with the U.S. Department of Education in 2011.
Since MOHELA began servicing federal student loans on October 20, 2011, it has received more than one million borrower accounts. Now, MOHELA services a total of approximately 1.25 million borrower accounts with a volume of $20.0 billion, compared to $4.2 billion in October 2011. To service the additional accounts on behalf of the U.S. Department of Education, MOHELA has added 184 jobs in the past 18 months.
"MOHELA set its sights high and has achieved a significant milestone within just 12 months," said Raymond H. Bayer, Jr. "We continue to provide exceptional service to borrowers because of our dedicated employees. Everyone has pulled together during the last year and their hard work has gotten us to where we are and where we know we can be in the future."
Additional loan accounts will be allocated to MOHELA on a competitive basis and evaluated by the Department of Education. Based on our history of providing high quality customer service, MOHELA leadership anticipates we will be able to continue to grow the volume of federal loan accounts we service.
MOHELA's success benefits stakeholders throughout Missouri; contributing to capital projects on higher educational campuses and offering financial support to Missouri college students in financial need. During the last 30 years, MOHELA has provided approximately $350 million to advance higher education in Missouri.
MOHELA is one of the largest student loan companies in America and is dedicated to easing the burden of financing higher education in Missouri while providing exceptional student loan services. As a leading student loan servicer managing more than $24 billion in assets, MOHELA brings more than 30 years of experience assisting students, families and schools with servicing needs of their student loans. In 2011, MOHELA became the first servicer in the not-for-profit sector to receive a federal contract with the Department of Education to service loans as part of the Federal Loan Program. Visit us on Facebook, Twitter, LinkedIn, Google+, Pinterest and YouTube.