In the event you’re a pupil mortgage borrower whose mortgage is being serviced by Navient, you might have heard the corporate goes to be transferring its loans to a different firm. What does that imply for you?
There’s a lot occurring behind the scenes, however the excellent news is the influence on you have to be minimal. However you need to nonetheless know what’s occurring.
Under, we’ve acquired 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 to your mortgage. The servicer handles administrative processes, like conserving 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 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’ll 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 influence 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 cost plan, rate of interest, month-to-month cost, and many others.
There’s one factor you need 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 cellphone quantity. If an essential discover will get despatched to the unsuitable place, it might turn out to be a much 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 companies different loans of mine?
There’s one wrinkle: Aidvantage is just getting federal pupil 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 companies, 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 pupil mortgage enterprise however has been offering companies to authorities businesses since 1975.