Navient exits student loan servicing – here are 5 things that means for you.

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If you have student loans and Navient has been your servicer, you may be in for some big changes.

That’s because Navient, one of the industry leaders in servicing education loans, just announced that it will cease its servicing business going forward. At this time, Navient handles servicing for services student loans, parent loans and FFELP Loans for about 12 million borrowers.

In its statement, Navient confirmed that it signed a “definitive agreement” to start passing all federal student loan servicing to Maximus, a similar servicer and player in the market.

“Navient is pleased to work with the Department of Education and Maximus to provide a smooth transition to borrowers and Navient employees as we continue our focus on areas outside of government student loan servicing,” said Jack Remondi, Navient President and CEO. “Maximus will be a terrific partner to ensure that borrowers and the government are well served, and we look forward to receiving FSA approval.”

But before the transfer Navient’s book of servicing business to Maximus can become official, it still needs the seal of approval from the U.S. Department of Education.

At the time of this writing, both Navient and Maximus have submitted their paperwork for a preliminary request for the transfer, which will be reviewed by Federal Student Aid (FSA).

Navient’s move to eschew student loan servicing follows the course of two other major companies in that space, and Granite Management and Resources and FedLoan Servicing, who will cancel or fail to renew existing contracts before year’s end.

So, if you have a student loan and you just checked your latest statement only to find that Navient is your servicer, what will this mean for you?

Here are five changes you will see if Navient is your student loan servicer:

  1. Obviously, Navient will cease to be your servicer (there is no tapering out or grandfathering of accounts, etc.). Therefore, once the U.S. Department of Education approves the change, you’ll have a new servicer and get statements from a new firm (possibly Maximus) every month.
  2. That also means that if you have questions and want to contact customer service, need to recertify income for student loan forgiveness, or even need to enroll in an income-driven repayment plan, you will no longer go through Navient.
  3. If all goes as planned, Maximus will most likely be your new student loan servicer, so don’t block calls, emails, or throw out mail from Maximus! At the time being, Maximus services 7.1 million loans with a collective $166 billion of debt.
  4. Even though your servicer may change, your federal student loan debt will still be eligible for all standard federal benefits, including deferment, forgiveness, forbearance, and more.
  5. If and when the change goes through, the U.S. Department of Education will notify you, alerting you to the details of the transfer and if there are any next steps for you to complete.


Don’t worry – this shift from Navient to Maximus (or others) to service your student loan won’t cost you anything or alter your payment schedule.

But you should be acutely aware during this transition process, as there will inevitably be mistakes, scams, hacks, and other malfeasance that can set you back financially.

It may also be a good time to review your student loans, payment schedule, deferment or forgiveness programs, and ensure that nothing incorrect is showing up on your credit report. As always, contact Blue Water Credit for a full review of your credit score and report to make sure you’re on track!


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