Navient exits the student loan business so, Maximus may become your new loan servicer.
Navient is one of the biggest names in student loans and will be exiting the business. It manages student loans for 5.6 million customers and has requested the US Department of Education to let it transfer its caseload to Maximus. Maximus is a global administrator of government programs.
It is not a lender itself but it manages the repayment process for student loans on behalf of the government.
A moratorium was enacted on the student debt payments in March 2020 in response to COVID-19 and was extended by President Biden. This had put the student debts on hold till January 2022.
The departure of Navient has followed the exit of two other federal loan servicers earlier this year.
Why Did Navient Withdraw From Its Business And What Does It Mean For You?
It was under fire from the Consumer Financial Protection Bureau. It had sued them in 2017 and had claimed that the company had made it difficult for borrowers to repay their loans. That lawsuit is still in process, and Lux says that the increase in federal regulation and government scrutiny over federal loan servicing is almost certainly to blame for Navient’s departure.
This company will stop servicing your student loans whether or not the FSA agrees to transition the loans to Maximus. This transition could happen sooner, though, if the FSA lets Navient withdraw early.
If Navient’s agreement with Maximus is accepted by the FSA, Maximus could become your new loan servicer. That means you would pay your student loans to Maximus instead of Navient. While the transition may happen sooner than planned, ultimately, you should not notice any major changes with your student loans. Any plans or special payment methods you’re enrolled in should transfer over automatically.
The transition may slow things down. Customer support response times may be delayed as account information is transferred particularly if your account is in forbearance.
