Private College Student Loan

How did MOHELA take over my loan from the US Department of Education?

I have a student loan from the US Department of Education. (Direct Loans) My loan is paid on-time, every month, and in good standing. I received a letter in the mail today from MOHELA claiming that they have taken over my student loan and I should start paying them. Here is what they claim in the direct mail they sent me: WHY WE ARE CONTACTING YOU: Effective 11/10/11, your federally-owned student loan account, previously serviced by the Direct Loan Servicing Center, is now being serviced by MOHELA, Department of Education Servicer. MOHELA is honored to be selected as your servicer and we look forward to providing you with excellent service. --End of quote-- MOHELA's address: 633 Spirit Drive., Chesterfield, MO. 63005 I have never contacted MOHELA for any reason. I went to school in California. I am from California. I have never even been to Missouri in my life. How could they have possibly got ahold of my loan? My loan is not past due, and has always been paid on time. I have never attempted to consolidate my loan, or change it to a loan servicing center. Is it legal for them to just suddenly take over my loan? Is this a scam? I have never contacted MOHELA in my life, I still have not contacted them. I just received this letter in the mail out of the blue. Is this legal? Should I contact the Better Business Bureau and file a complaint? Can I sue them for harassment?

Public Comments

1. No, talk to the DOE or a loan officer at your school. No, the government abandoned using the private sector and they do it all directly. Just random computer or digging through your mail or hacking into the database. This is probably an SEC matter since they investigate cases of fraud like with credit cards. I don't know how the harrassment charge may go but the fraud charge will stick.
2. Mohela is one of the approved servicers for the department of education. though the loan is owned by the government, they pay servicers to hold and maintain the loans. direct loans is also a servicer. you should still do your research that this is a legitimate transfer and not a scam, but is normal for your loans to change hands between different servicers. check www.nslds.ed.gov to find information on your loans owned by the department of education, and who is servicing those loans. if Mohela is listed as the servicer, your loan has been transfered. if direct loans is still listed, you should contact them or the department of education to find out whats going on.