Should you’re a pupil mortgage borrower whose mortgage is being serviced by Navient, you’ll 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 influence on you ought to be minimal. However you must nonetheless know what’s occurring.
Beneath, we’ve received a breakdown of what’s altering and what it’s good 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 holding observe of your funds and determining in case you’re eligible for any pupil mortgage forgiveness applications. The lender is assigned by the U.S. Dept. of Training while you take out the mortgage.
2. What’s altering?
Navient requested to finish their contract to service federal pupil loans this yr. The contract will run till December 2023, however the corporate is already transferring its loans to a brand new firm — Aidvantage, which is the mortgage servicing division of an organization known as Maximus.
You could have already heard from Navient (or Aidvantage) that your mortgage is being transferred. Should 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 influence on you in any respect.
Positive, there can 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 so on.
There’s one factor you must do: Contact Navient now (or Aidvantage in case your mortgage was already transferred) to make sure they’ve the appropriate contact data for you — not simply your mailing tackle but in addition your e mail and cellphone quantity. If an essential discover will get despatched to the unsuitable place, it might develop into a much bigger challenge.
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 companies different loans of mine?
There’s one wrinkle: Aidvantage is barely getting federal pupil loans. Should you occur to even have non-public loans or FFELP loans (older loans issued underneath the Federal Household Training Mortgage Program) that Navient additionally companies, they won’t be transferred.
Sadly, that additionally means you’ll have two servicers, with separate web sites, and also you’ll need to make two separate funds, and so on.
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 companies to authorities companies since 1975.
