1996 25 hp Mercury shift trouble

[Mike B1]

I have a new to me 1996 Mercury 25hp S/N OG154646. All systems worked well until suddenly it will not engage into gear forward or reverse and the electric start will not function. This is a tiller steer unit with tiller shift. The engine starts and runs with pull start, but only revs when turning the throttle to forward or reverse. Thank goodness for the trolling motor or I'd have been stranded. All of these issues happened at the same time, I assume they are related?

 

[racerone]

Check the gear oil.

 

[Mike B1]

Thanks! Am I checking for quantity, shavings, etc...?