When you’re a scholar 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 occurring behind the scenes, however the excellent news is the impression on you ought to be minimal. However it is best to nonetheless know what’s taking place.
Beneath, we’ve acquired a breakdown of what’s altering and what you have 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 to your mortgage. The servicer handles administrative processes, like conserving monitor of your funds and determining if you happen to’re eligible for any scholar mortgage forgiveness applications. The lender is assigned by the U.S. Dept. of Training while you take out the mortgage.
2. What’s altering?Â
Navient requested to finish their contract to service federal scholar 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 referred to as Maximus.
You will have already heard from Navient (or Aidvantage) that your mortgage is being transferred. When 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 probably be some adjustments, together with getting mail from Aidvantage as a substitute of Navient. What received’t change: your cost plan, rate of interest, month-to-month cost, and so forth.
There may be one factor it is best to do: Contact Navient now (or Aidvantage in case your mortgage was already transferred) to make sure they’ve the suitable contact information for you — not simply your mailing handle but additionally your electronic mail and cellphone quantity. If an vital discover will get despatched to the flawed place, it might change into an even bigger situation.
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 may be one wrinkle: Aidvantage is simply getting federal scholar loans. When you occur to even have personal loans or FFELP loans (older loans issued beneath 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 forth.
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 companies to authorities businesses since 1975.