All federal loans in the FedLoan portfolio will be split up and transferred to other servicers including EdFinancial, MOHELA, Aidvantage (formerly Navient) and Nelnet.
Aidvantage is your new loan servicer
By now, you should have been notified of this change by mail or email from Navient, Aidvantage and the Department of Education.
Update as of Oct.
In addition to the ongoing transfers to MOHELA, we will soon begin transferring groups of FedLoan Servicing borrowers to Navient (now Aidvantage), Edfinancial, and Nelnet. If you're an affected borrower, look out for notices from us and from FedLoan Servicing with more information about this transfer.
Key takeaways. Navient no longer services federal student loans. It still services private student loans and provides private student loan refinancing. The best way to determine if you have federal or private students loans is to check studentaid.gov.
Navient is forgiving the student debt of 66,000 borrowers. ... Just around 0.15% of the country's student loan borrowers will get their debt cleared from the recent settlement between Navient and dozens of states. But the company is also required to write a check for approximately $260 to some 350,000 borrowers.
Is Navient Federal or Private? While Congress originally created Sallie Mae to support the federal student loan program, it was eventually privatized. Navient is a private company that the U.S. Department of Education once hired to service its federal loans.
Some FFELP loans are owned by the U.S. Department of Education and some are not. ... But, Navient and Nelnet operate under their own names, without special aliases in the Direct Loan program.
Can you separate myth from fact? Great Lakes, FedLoan Servicing, Navient, and Nelnet are student loan servicers. They're the connection between you and the lender. For federal student loans, the interest is determined by the Higher Education Act as enacted and amended by Congress.
Navient is a U.S. corporation based in Wilmington, Delaware, whose operations include servicing and collecting student loans. Managing nearly $300 billion in student loans for more than 12 million debtors, the company was formed in 2014 by the split of Sallie Mae into two distinct entities: Sallie Mae Bank and Navient.
Headquartered in Madison, Wisconsin, the corporation is non-profit. It was one of the four largest companies which service United States federal student loans: Great Lakes, Nelnet, Navient, and the Pennsylvania Higher Education Assistance Agency. In 2018, the loan servicing part of the organization was sold to Nelnet.
The U.S. Department of Education (ED) has transferred the customer service of your federal student loan account from FedLoan Servicing to MOHELA, another member of ED's federal loan servicer team.
As the Biden administration seeks to reform the troubled student loan industry, FedLoan's portfolio of 8.5 million loans will be carved up and dispersed over the coming year to four other servicers: Mohela, Navient, Nelnet, and Edfinancial Services.
FedLoan blamed a lack of guidance from the Department of Education, and stated that it “cannot move forward” to process the updated PSLF requirements until the Department amended its servicing contract with the agency.
Federal student loan servicers, such as Nelnet and Navient Corp., are companies that collect payments, respond to customer service inquiries and perform other administrative tasks on behalf of the U.S. Department of Education.
Navient ended its federal student loan servicing contract after December 2021 and its portfolio was transferred to Aidvantage. Navient continues to service privately held FFEL program debt and provide private student loans.
Navient decided last year to get out of the federal student loan business. It ended its contract with the Education Department, which allowed the company to transfer its 5.6 million borrower accounts to a new vendor, Maximus, which does business as Aidvantage.
These days, they are two separate companies. Sallie Mae is offers private student loans and Navient acts as a servicer for federal and private student loans.
Borrowers previously working with Sallie Mae as they repaid their federal loans became customers of Navient (the name is built off the word “navigation,” because the company says its goal is to navigate borrowers through repayment), but Sallie Mae continues to originate and service private student loans.
Public Service Loan Forgiveness Requirements
Make 10 years' worth of payments, totaling 120 payments (although you are still eligible if you have to pause payments through forbearance), for the full amount within 15 days of your monthly payment due date.
Negotiating a student loan settlement with Navient is possible, but it's not guaranteed. You may be able to negotiate a settlement if your loans are in or near default and you have enough cash to pay the settlement amount in full or over a short period of time.
Great Lakes is a U.S. Department of Education federal student loan servicer. We help with student loan questions, repayment, consolidation, payment relief, and more.
What federal student loans are eligible for relief? Payments and interest have been suspended from March 13, 2020, through May 1, 2022, for four types of federal student loans: ... Federal Family Education Loan Program (FFELP) loans held by the government.
Federal education loans are available through the William D. Ford Federal Direct Loan Program (“Direct Loans”). The Federal Family Education Loan Program (“FFEL Program” or “FFELP”) is no longer making loans. Additional information available from the US Department of Education: Federal Family Education Loan Program.
Is FedLoan Servicing legitimate or a scam? FedLoan Servicing is one of a limited number of organizations approved by the U.S. Department of Education to service these loans and says it's dedicated to supporting borrowers with easy and convenient ways to manage their repayments.
Remember, FedLoan is a loan servicer, and so they WILL report any delinquencies or other issues on your account to the credit bureaus (Equifax, Transunion, Experian). That can seriously impact your credit score.