MOHELA Officially Opens New Direct Loan Servicing Center

ST. LOUIS, MO--(Marketwire - Sep 28, 2011) - MOHELA today held an Open House and Ribbon Cutting event at their new Federal Direct Student Loan Servicing Center located at its headquarters in Chesterfield, MO. The new Student Loan Servicing Center was specifically designed to service up to 3 million borrower accounts on behalf of the US Department of Education. On September 27, 2011, MOHELA entered into a contract with the US Department of Education to service student loans owned by the federal government. While the contract ultimately provides for servicing of up to 10 million borrower accounts, future MOHELA allocations will be based upon MOHELA's servicing performance and the ongoing needs of the US Department of Education.

MOHELA's new Federal Student Loan Servicing Center was specifically designed to accommodate the 279 additional employees needed to service 3 million Federal Direct Student Loans. In recent months and in anticipation of receiving a contract from the US Department of Education, MOHELA began hiring 22 new employees every eight weeks. MOHELA's in-house training facility can accommodate up to 22 new-hires every eight weeks.

The Student Loan Servicing Center also includes $5 million in enhancements including a new print and mail facility in addition to significantly enhanced networks, telecommunication systems and server virtualization technology.

The first transfer of Federal Direct Student Loans to MOHELA is scheduled to occur on October 20, 2011. "MOHELA's staff has worked countless hours since October of 2009, preparing for this contract," said Jennifer Farmer, MOHELA's Director of Federal Contracting.

"We are very proud of our new Federal Direct Student Loan Facility. The technology incorporated into the center will allow us to provide outstanding customer service to literally millions of student borrowers. We are prepared to accommodate this new volume from the Department with the excellent service levels that MOHELA has become known for," noted Raymond H. Bayer, Jr. MOHELA's Executive Director. Bayer further noted, "We will continue to hire 22 employees every eight weeks for the foreseeable future in order to ensure that MOHELA's servicing standards are being met."

MOHELA is one of the largest student loan companies dedicated to providing excellence in student loan servicing in America and is a leading holder and secondary market of student loans with more than $4 billion in assets. For over 30 years, students, families and schools have come to depend and rely on MOHELA to assist them with the servicing needs of their student loans and have come to expect the highest levels of service we have consistently provided to enable them to successfully complete postsecondary educational programs.