In case you’re a pupil mortgage borrower whose mortgage is being serviced by Navient, you will 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 impression on you ought to be minimal. However it is best to nonetheless know what’s taking place.
Under, we’ve obtained a breakdown of what’s altering and what that you must know.
1. What does my mortgage servicer do?
It may appear complicated, however the pupil 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 retaining monitor of your funds and determining should you’re eligible for any pupil mortgage forgiveness packages. 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 will have already heard from Navient (or Aidvantage) that your mortgage is being transferred. In case 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 impression on you in any respect.
Positive, there might be some adjustments, together with getting mail from Aidvantage as an alternative of Navient. What received’t change: your fee plan, rate of interest, month-to-month fee, and so on.
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 data for you — not simply your mailing deal with but in addition your e-mail and cellphone quantity. If an vital discover will get despatched to the incorrect place, it may change into a much bigger subject.
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 just 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 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 businesses since 1975.