What is happening
If Navient was your federal loan officer, your loans have been transferred to Aidvantage.
why is it important
With the government loan break ending in September, you'll want to understand how to log in to the Aidvantage website to view your student loan account.
The payment break might be extended again, but we advise checking your Aidvantage account now, just in case.
Federal student loan repayments have been suspended in excess of 2 yrs, since the start of pandemic. It is not clear when the the break will be extended again, and currently payments are required to resume in September. If you haven't logged into your education loan account because the payment freeze began, now is a great time to join up.
If you had Navient federal student loans owned by the united states Department of Education, your loans happen to be transferred to a brand new loan servicer. In 2022, Navient exited the government student loan servicing business, shifting its 5.Six million education loan workload to Aidvantage, which is owned by education loan giant Maximus. The new loan servicer won't affect existing conditions and terms, interest rates or available repayment plans, but you should carefully review all communications you have received concerning the transfer.
Here's all you need to learn about what happened to Navient and the way to log to your new Aidvantage student loan Account.
Why did Navient exit the student loan business?
Navient is definitely criticized by the Consumer Financial Protection Bureau, which sued the loan manager in 2022: it claimed the organization pushed borrowers into expensive, subprime private loans that they would be not able to repay. In January, Navient canceled $1.7 billion in private student loans for pretty much 66,000 borrowers after coming under scrutiny for participating in abusive and deceptive practices, including targeting students whose company knew they could not repay loans.
In 2022, the U.S. Department of Education announced loan servicing alterations in an effort to modernize the federal education loan system. As area of the Next Gen initiative, the Department of Education expanded its partnership with five of the current 10 loan servicers, who would still service federal student education loans, but under stricter government regulations. Navient, along with FedLoan and Granite State, have elected to finish their participation within the federal student loan service after 2022.
Michael Lux, student loan expert, attorney and founding father of Student Loan Sherpa, said \”increased federal regulation and government oversight over the servicing of federal loans is almost certainly the reason for Navient's departure.\”
What does leaving Navient mean for your student education loans?
If your federal student education loans were previously managed by Navient, this is what you should know:
1. Aidvantage is your new student loan manager
By now you should have been notified of the change by post or email from Navient, Aidvantage and also the Department of Education. If you didn't receive a notification, you need to log into your existing Navient account and double-check your contact information to ensure it is correct. Even if your address was outdated, you ought to be able to sign in to your new account.
2. You can access your Aidvantage account with Navient credentials
If you try to log into Navient, you will find a balance of $0: this balance simply indicates that your loans have been purchased by Aidvantage. To log in for your new account, go to aidvantage.com and enter your Navient login information.
The process is almost just like those of Navient. Once you've entered your username and password, you will be prompted to go in your social security number or account number and date of birth to verify your identity. From there, you will be taken to the Aidvantage account homepage, which appears like the Navient homepage, down to the left navigation options.
If you don't remember your login information, select \”Forgot User ID\” or \”Forgot Password\” and ensure a personal challenge question to get a new one by email. If you'll still cannot enter or you no longer have the registered email, contact Aidvantage for assistance at 800-722-1300.
3. Your payment preferences ought to be the same, but check
Any payment terms you have set up with Navient (auto-pay, deferment, income-contingent repayment plans) should have been seamlessly used in Aidvantage. Of course, since federal education loan payments have been receiving hold for more than 20 months, you may want to revisit payment details, especially as you approach no more the forbearance. And, if your work situation is different since you last looked at the loan repayment options, you can make an application for income-contingent repayment or any other repayment options through Aidvantage now, so you're all set. when repayment begins in September.
So, after logging into Aidvantage, you need to find that your chosen payment method and automatic payment selection happen to be transferred, along with your payment background and history of fully repaid loans.
4. Reimbursement is currently scheduled for September
Federal student loan repayments stick to hold until August 31. If you haven't already repaid your loans throughout the forbearance period, make sure you know what your payment per month will be now, so that you can factor it into your budget. You may also explore repayment options if you want additional help.
If you would like to explore other deferral or forbearance options, you can do so through your internet account under \”Refund Options\”. You can also speak directly to Aidvantage at 800-722-1300.
Did Navient become Aidvantage?
No. At the end of 2022, Navient transferred its 5.Six million student loan workload to Maximus, another federal student loan contractor. Maximus operates its education loan service as Aidvantage.
Should I pay my student education loans now or hold back until my loan is forgiven?
There's no guarantee of widespread student loan forgiveness, but the latest news indicates the Biden administration may be considering $10,000 in federal student loan relief, with a few income limits. No official announcement has yet been made. Unless you only have this amount in federal student education loans or less, it's a good idea to plan for repayment now. And, if you're able, paying during the break can reduce the principal quantity of your loan, saving you money on interest when payments resume.
If you are a teacher, healthcare worker, firefighter or any other public servant, you may be entitled to forgiveness through the expanded Civil Service Loan Forgiveness Program. Since the changes made last October, the PSLF has identified a lot more than 113,000 borrowers eligible for loan cancellation. If you can get PSLF or were on an income-based repayment plan, which gives you forgiveness after 20 to Twenty five years of payments, every month of suspended payments counts toward the loan forgiveness goal. So you have to arrange for repayment, but there's little benefit to making payments during the freeze.