In the event you’re a pupil mortgage borrower whose mortgage is being serviced by Navient, you’ll have heard the corporate goes to be transferring its loans to a different firm. What does that imply for you?
There’s a lot happening behind the scenes, however the excellent news is the impression on you need to be minimal. However you need to nonetheless know what’s taking place.
Beneath, we’ve received a breakdown of what’s altering and what you have to 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 on your mortgage. The servicer handles administrative processes, like maintaining observe of your funds and determining when you’re eligible for any pupil mortgage forgiveness applications. The lender is assigned by the U.S. Dept. of Schooling whenever 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 the event you haven’t, you most likely 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 will likely be some modifications, together with getting mail from Aidvantage as an alternative 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 precise contact data for you — not simply your mailing tackle but additionally your e mail and telephone quantity. If an necessary discover will get despatched to the improper place, it might turn out to be an even bigger subject.
As soon as the switch has begun, it’s additionally a good suggestion to double-check your subsequent few funds are acquired and logged correctly.
4. What if Navient providers different loans of mine?
There may be one wrinkle: Aidvantage is just getting federal pupil loans. In the event you occur to even have non-public loans or FFELP loans (older loans issued beneath the Federal Household Schooling Mortgage Program) that Navient additionally providers, 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 providers to authorities companies since 1975.
