For those who’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 happening behind the scenes, however the excellent news is the impression on you have to be minimal. However it is best to nonetheless know what’s taking place.
Beneath, we’ve bought a breakdown of what’s altering and what you could know.
1. What does my mortgage servicer do?
It may appear 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 for those who’re eligible for any scholar mortgage forgiveness applications. The lender is assigned by the U.S. Dept. of Schooling if you take out the mortgage.
2. What’s altering?
Navient requested to finish their contract to service federal scholar loans this 12 months. The contract will run till December 2023, however the company is already transferring its loans to a new company — 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. For those who 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.
Certain, there shall 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 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 data for you — not simply your mailing tackle but in addition your electronic mail and telephone quantity. If an vital discover will get despatched to the improper place, it might grow to be 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 obtained and logged correctly.
4. What if Navient companies different loans of mine?
There may be one wrinkle: Aidvantage is barely getting federal scholar loans. For those who occur to even have personal loans or FFELP loans (older loans issued below 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 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.