Navient Transfers Scholar Loans to Aidvantage: 5 You Ought to Know

In case you’re a pupil mortgage borrower whose mortgage is being serviced by Navient, you might have heard the corporate goes to be transferring its loans to a different firm. What does that imply for you?

There’s a lot occurring behind the scenes, however the excellent news is the impression on you ought to be minimal. However you need to nonetheless know what’s taking place.

Under, we’ve acquired a breakdown of what’s altering and what that you must know.

1. What does my mortgage servicer do?

It may appear complicated, however the pupil mortgage servicer is not the identical as your lender. The lending firm truly ponies up the money to your mortgage. The servicer handles administrative processes, like holding monitor of your funds and determining for those who’re eligible for any pupil mortgage forgiveness applications. The lender is assigned by the U.S. Dept. of Schooling if you take out the mortgage.

2. What’s altering? 

Navient requested to finish their contract to service federal pupil loans this yr. The contract will run till December 2023, however the firm is already transferring its loans to a brand new firm — Aidvantage, which is the mortgage servicing division of an organization referred to as Maximus.

You’ll have already heard from Navient (or Aidvantage) that your mortgage is being transferred. In case you haven’t, you in all probability will someday within the subsequent few months.

3. What does this imply for me?

The excellent news is that the switch shouldn’t have a lot impression on you in any respect.

Positive, there can be some adjustments, together with getting mail from Aidvantage as a substitute of Navient. What gained’t change: your fee plan, rate of interest, month-to-month fee, and so forth.

There may be one factor you need to do: Contact Navient now (or Aidvantage in case your mortgage was already transferred) to make sure they’ve the correct contact data for you — not simply your mailing handle but additionally your electronic mail and telephone quantity. If an essential discover will get despatched to the incorrect place, it may turn out to be a much bigger challenge.

As soon as the switch has begun, it’s additionally a good suggestion to double-check your subsequent few funds are obtained and logged correctly.

4. What if Navient companies different loans of mine?

There may be one wrinkle: Aidvantage is just getting federal pupil loans. In case you occur to even have non-public loans or FFELP loans (older loans issued underneath the Federal Household Schooling Mortgage Program) that Navient additionally companies, they won’t be transferred.

Sadly, that additionally means you’ll have two servicers, with separate web sites, and also you’ll should make two separate funds, and so forth.

5. What’s Aidvantage?

As we talked about above, Aidvantage is a mortgage servicer inside Maximus. Maximus is new to the federal pupil mortgage enterprise however has been offering companies to authorities companies since 1975.