MOHELA Officially Opens New Direct Loan Servicing Center

Wed Sep 28, 2011 3:48pm EDT

* Reuters is not responsible for the content in this press release.

  ST. LOUIS, MO, Sep 28 (MARKET WIRE) -- 
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. 

    

For additional information, contact:
Will Shaffner
Office 636-733-3830 

Copyright 2011, Market Wire, All rights reserved.

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