By Hugh T. Ferguson, NASFAA Staff Reporter
Federal Student Aid (FSA) on Wednesday formally accepted Navient’s exit from federal student loan servicing and approved the transfer of its portfolio to Maximus.
Navient is currently the student loan servicer for roughly 5.5 million borrowers, all of whom will now be transferred to Maximus.
“We are confident this decision is in the best interest of the approximately 5.5 million federal student loan borrowers who will be serviced by Maximus and will provide the stability and high-quality service they deserve,” said Richard Cordray FSA’s chief operating officer.
FSA further pledged to make the servicer transition “as seamless as possible” by ensuring borrowers retain access to their payment histories and also not have to change their login credentials or other borrower-specific details.
Navient previously indicated that it would exit student loan servicing at the end of September and expected this new contract to be approved by the end of 2021.
While FSA now has a new servicer for these borrowers, the office will still need to contend with the exits of other servicers who hold roughly 10 million additional accounts.
The Department of Education (ED) intends to transition all student loan borrowers back into repayment by Jan. 31, 2022.
Publication Date: 10/21/2021
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