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In the event you’re a pupil mortgage borrower whose mortgage is being serviced by Navient, you could 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 affect on try to be minimal. However it's best to nonetheless know what’s occurring.
Under, we’ve received a breakdown of what’s altering and what it's essential to know.
1. What does my mortgage servicer do?
It might sound complicated, however the pupil mortgage servicer is not the identical as your lender. The lending firm truly ponies up the money in your mortgage. The servicer handles administrative processes, like protecting monitor of your funds and determining if you happen to’re eligible for any pupil mortgage forgiveness packages. 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 12 months. The contract will run till December 2023, however the company is already transferring its loans to a new company — Aidvantage, which is the mortgage servicing division of an organization known as Maximus.
You might have already heard from Navient (or Aidvantage) that your mortgage is being transferred. In the event 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 affect on you in any respect.
Positive, there will probably 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's one factor it's best to do: Contact Navient now (or Aidvantage in case your mortgage was already transferred) to make sure they've the fitting contact information for you — not simply your mailing deal with but additionally your e mail and telephone quantity. If an vital discover will get despatched to the fallacious place, it might develop into a much bigger difficulty.
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's one wrinkle: Aidvantage is simply getting federal pupil loans. In the event you occur to even have personal loans or FFELP loans (older loans issued underneath 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.
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