Who Did Navient Transfer Student Loans To?
Navigating changes to your Navient federal student loans? Discover where your loans were transferred and how to find your new servicer.
Student loan servicing changes can create uncertainty for borrowers. Navient, once a major servicer of federal student loans, completed its exit from this role, leading to the transfer of millions of borrower accounts. This transition aimed to streamline the federal student loan system and clarify loan management for borrowers. This article explains Navient’s departure and guides borrowers on identifying and managing transferred loans.
The Navient Federal Loan Servicing Transition
Navient’s exit from federal student loan servicing marked a substantial shift in the student loan landscape. The company announced its exit in September 2021, with federal direct student loans officially transferring after December 31, 2021. This move was driven by expiring federal contracts and the profitability and operational complexities of servicing government-owned loans.
The transition primarily impacted federal student loans, including Direct Loans and government-owned Federal Family Education Loan Program (FFELP) loans. These differ from private student loans, which were not part of this federal transfer. Borrowers were not required to take action for the transfers, as the process was managed by Navient and the U.S. Department of Education’s chosen servicers.
New Servicers for Federal Student Loans
The core of Navient’s federal student loan portfolio was transferred to Aidvantage. Aidvantage operates as the federal loan servicing unit of Maximus Education, LLC. It assumed responsibility for managing approximately 5.6 million student loan accounts previously handled by Navient.
Aidvantage now manages these loans on behalf of the U.S. Department of Education, processing payments, providing customer support, and assisting borrowers with repayment options. While Maximus Education, LLC is the parent company, borrowers interact directly with Aidvantage for their federal loan servicing needs.
Locating and Managing Your Transferred Loans
Identifying your current federal student loan servicer is a straightforward process. The most effective method is to access the official National Student Loan Data System (NSLDS) through StudentAid.gov. This online portal provides a comprehensive overview of all your federal student loans, including the current servicer for each loan.
To use StudentAid.gov, you will need your FSA ID to log in to your account dashboard. Once logged in, navigate to the “My Loan Servicers” section, which displays the name and contact information for your assigned servicer. If you encounter any difficulties, the Federal Student Aid Information Center (FSAIC) is available by phone at 1-800-433-3243.
After identifying your new servicer, take several steps to ensure a smooth transition and effective loan management. First, register for online access with your new servicer using information from their welcome communication, which may include previous Navient login credentials. Verify your contact information (mailing address, phone, email) is accurate with the new servicer. Confirming your payment details, especially if you were enrolled in autopay, is also a prudent step to avoid missed payments. Your new servicer can also guide you through available repayment options, deferment, forbearance, or other assistance programs.
Navient’s Ongoing Servicing Responsibilities
While Navient no longer services federal student loans owned by the U.S. Department of Education, it maintains other servicing responsibilities. Navient continues to service a significant portfolio of private student loans. These are private lender-originated loans, not federal, and were not part of the mass federal transfers.
Navient also previously serviced some federal student loans under the Federal Family Education Loan (FFEL) Program owned by private lenders. Navient transferred its remaining private and FFELP student loan portfolio to MOHELA, with transfers beginning in the second half of 2024. As of October 2024, MOHELA is servicing Navient’s private education loans. Borrowers with private loans should understand their loan type determines whether they interact with Navient or their newly assigned private loan servicer.