Navient Ends Federal Student Loan Administration – Here’s What It Means For Your Student Loans
Navient will no longer be your student loan manager.
Here’s what you need to know and what it means for your student loans.
Navient, one of the nation’s leading student loan managers, announced today that it will be off your federal student loans for a very long time. Naviant said:
- Navient signed a definitive agreement to transfer its federal student loan service for student loan accounts owned by the US Department of Education to Maximum, another student loan service;
- The federal contract will be transferred by a contract novation;
- The US Department of Education must approve the transfer;
- Navient and Maximus
have submitted a preliminary request for review to Federal Student Aid; and
- Navient has followed in the footsteps of two other student loan managers – FedLoan Servicing and Granite Management and Resources – who will end their federal student loan management contracts before the end of the year.
âNavient is excited to work with the Department of Education and Maximus to ensure a smooth transition for borrowers and Navient employees as we continue to focus on areas other than government student loan servicing,â said said Jack Remondi, President and CEO of Navient. “Maximus will be a great partner in ensuring borrowers and government are well served, and we look forward to receiving FSA approval.”
What this means for your student loans
If you have student loans, chances are Navient is your student loan manager. Navient offers student loans, parent loans, and FFELP loans to approximately 12 million student loan borrowers. Here’s what the announcement means for your student loans:
1. Navient will no longer repay your student loans
If the US Department of Education approves this new contract, Navient will no longer be your student loan manager. This means that, subject to approval, you will no longer be making student loan payments to Navient to pay off your student loans. When you have a question about your student loans, need to sign up for an income-based repayment plan, or need to recertify your income, you will no longer contact Navient. It’s not uncommon for your student loan officer to change during the term of your student loan repayment, so you shouldn’t worry.
2. Maximus could be your new student loan manager
Subject to the approval of the US Department of Education, Maximum may become your new student loan manager. Currently, Maximus serves 7.1 million student loan borrowers who collectively have $ 166 billion in student loans. If approved, you will start paying your student loans through Maximus. If the education department does not approve Maximus, you may be assigned to another student loan manager.
3. The US Department of Education will notify you of the next steps
When your student loan manager changes, the US Department of Education will notify you of your new student loan manager. Don’t worry, it won’t cost you extra money and you won’t be required to navigate your next steps. The education department should send you instructions on your new student loan manager, how to contact them, and when you should start making payments to your new student loan manager. If Maximus becomes your new student loan manager, be sure to update your contact details and banking information for automatic payment when prompted.
4. Now is a good time to review your student loan repayment
There should be minimal or no impact on your student loans. The process should all take place behind the scenes. The only major impact is that you will pay your student loans through Maximus (if approved), rather than Navient. That said, student loan relief ends on January 31, 2022. This means that federal student loan payments will be due again as of February 1, 2022. After a 22-month hiatus, it’s time to reassess your payments. options and your strategy for students. loan repayment. Should You Refinance Student Loans? Should you pay off student loans faster? Income-based repayment? Cancellation of public service loan?