In case 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 happening behind the scenes, however the excellent news is the influence on you need to be minimal. However it is best to nonetheless know what’s taking place.
Beneath, we’ve obtained a breakdown of what’s altering and what it is advisable 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 retaining observe of your funds and determining when you’re eligible for any pupil mortgage forgiveness applications. The lender is assigned by the U.S. Dept. of Training whenever 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 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 case 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.
Certain, there shall be some modifications, 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 many others.
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 correct contact information for you — not simply your mailing handle but in addition your electronic mail and cellphone quantity. If an essential discover will get despatched to the incorrect place, it might change into an even bigger difficulty.
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 may be one wrinkle: Aidvantage is barely getting federal pupil loans. In case 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 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.