In the event you’re a scholar mortgage borrower whose mortgage is being serviced by Navient, you will 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 ought to be minimal. However you must nonetheless know what’s taking place.
Beneath, we’ve obtained a breakdown of what’s altering and what it’s worthwhile to know.
1. What does my mortgage servicer do?
It might sound complicated, however the scholar mortgage servicer is not the identical as your lender. The lending firm really ponies up the money in your mortgage. The servicer handles administrative processes, like retaining observe of your funds and determining in the event you’re eligible for any scholar mortgage forgiveness applications. The lender is assigned by the U.S. Dept. of Schooling while you take out the mortgage.
2. What’s altering?
Navient requested to finish their contract to service federal scholar loans this 12 months. 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 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 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 adjustments, together with getting mail from Aidvantage as a substitute of Navient. What received’t change: your fee plan, rate of interest, month-to-month fee, and many others.
There may be one factor you must 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 deal with but additionally your electronic mail and cellphone quantity. If an essential discover will get despatched to the mistaken place, it may turn into an even bigger concern.
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 providers different loans of mine?
There may be one wrinkle: Aidvantage is barely getting federal scholar 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 many others.
5. What’s Aidvantage?
As we talked about above, Aidvantage is a mortgage servicer inside Maximus. Maximus is new to the federal scholar mortgage enterprise however has been offering providers to authorities businesses since 1975.