28
Grade D

MOHELA Privacy Policy

PSLF Servicer | State Entity | Last reviewed: January 2026

Transfer Data Concerns: Millions of borrower accounts were transferred to MOHELA, raising questions about data integrity, security during transfer, and whether borrower information from previous servicers was properly handled.

Privacy Summary

MOHELA is a state-created nonprofit which creates unique privacy considerations. As a quasi-governmental entity, they're subject to some state transparency requirements but also share data extensively with federal agencies, employers (for PSLF verification), and contractors handling the massive account influx.

Data Collection Overview

Data Type Collected Shared Sold
Employment Certification Yes Employers, DoE No
Income Information Yes IRS, Dept of Ed No
Previous Servicer Data Yes (transferred) Dept of Ed No
Payment History Yes Credit Bureaus, DoE No
Communication Records Yes Dept of Ed, State No

Key Privacy Concerns

Transfer Data Security

Millions of records were transferred from FedLoan Servicing and other servicers. The security and integrity of data during these massive transfers is unclear, and borrowers weren't given choices about their data moving to MOHELA.

Government Data Sharing

As a PSLF servicer, MOHELA shares extensive data with government agencies including the Department of Education, IRS (for income verification), and employers (for PSLF certification). This creates a comprehensive financial profile.

Contractor Access

MOHELA uses numerous contractors to handle the volume of transferred accounts. These contractors have access to borrower data, but the privacy policy provides limited transparency about who these contractors are and their data practices.

State Records Laws

As a Missouri state entity, MOHELA is subject to state public records laws. While personal financial data is generally exempt, other account information could potentially be subject to records requests in certain circumstances.

PSLF-Specific Privacy Issues

Public Service Loan Forgiveness tracking creates additional privacy considerations:

  • Employment history verified directly with employers
  • Employer HR departments see loan status
  • Job changes create new verification cycles
  • Income data shared with IRS via data matching
  • 10+ years of employment data accumulated