Wait, what happened to my student loans?

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What is happening

If Navient was your federal loan officer, your loans have been transferred to Aidvantage.

why is it important

With the federal loan break ending in September, you’ll want to know how to log into the Aidvantage website to view your student loan account.

And after

The payment break might be extended again, but we recommend checking your Aidvantage account now, just in case.

Have you logged into your student loan account recently? If you had Navient federal student loans, you might be shocked to find that your loans are gone. But your student loans haven’t really disappeared — they’ve moved to a new loan servicer.

In 2021, Navient exited the federal student loan servicing business, shifting its 5.6 million student loan workload to Aidvantage, which is owned by student loan giant Maximus.

Federal student loan repayments have been halted for more than two years, since the start of the pandemic – and it is possible that the the break will be extended again. But, with payments set to resume in September, it’s a good idea to log into your student loan account now, especially if you haven’t registered since the payment freeze began.

Here’s everything you need to know about what happened to Navient and how to log into your new Aidvantage student loan Account.

Why did Navient exit the student loan business?

Navient has long been criticized by the Consumer Financial Protection Bureau, which sued the loan manager in 2017: it claimed the company pushed borrowers into expensive, subprime private loans that they would be unable to repay. In January, Navient canceled $1.7 billion in private student loans for nearly 66,000 borrowers after coming under scrutiny for engaging in abusive and deceptive practices, including targeting students which the company knew they couldn’t do. repay loans.

In 2020, the U.S. Department of Education announced loan servicing changes in an effort to modernize the federal student loan system. As part of the Next Gen initiative, the Department of Education expanded its partnership with five of the current 10 loan servicers, who would continue to service federal student loans, but under stricter government regulations. Navient, along with FedLoan and Granite State, have elected to end their participation in the federal student loan service at the end of 2021.

Michael Lux, student loan expert, attorney and founder of Student Loan Sherpa, said “increased federal regulation and government oversight over the servicing of federal loans is almost certainly to blame for Navient’s departure.”

What does Navient’s departure mean for borrowers?

If your federal student loans were previously managed by Navient, here’s what you need to know:

1. Aidvantage is your new student loan manager

By now you should have been notified of this change by post or email from Navient, Aidvantage and the Department of Education. If you did not receive a notification, you should log into your existing Navient account and double-check your contact information to make sure it is correct. Even if your address was outdated, you should be able to log in to your new account.

2. You can access your Aidvantage account with your 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 to your new account, go to aidvantage.com and enter your Navient login information.

The process is almost identical to that of Navient. Once you have entered your username and password, you will be prompted to enter your social security number or account number and date of birth to confirm your identity. From there, you will be taken to the Aidvantage account homepage, which looks 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 confirm a personal challenge question to receive a new one by email. If you still cannot enter or you no longer have access to the registered email, contact Aidvantage for assistance at 800-722-1300.

3. Your payment preferences should be the same, but it’s worth checking

Any payment terms you have set up with Navient (auto-pay, deferral, income-based repayment plans) should have been seamlessly transferred to Aidvantage. Of course, since federal student loan payments have been on hold for more than 20 months, you may need to revisit payment details, especially as you approach the end of the forbearance. And, if your work situation has changed since you last looked at your loan repayment options, you can apply for income-contingent repayment or other repayment options through Aidvantage now, so you’re good to go. when repayment begins in September.

So, after logging into Aidvantage, you should find that your preferred payment method and automatic payment selection have been transferred, along with your payment history and history of fully repaid loans.

4. Reimbursement is currently scheduled for September 2022

Federal student loan payments remain on pause until August 31. If you haven’t already paid off your loans during the forbearance period, make sure you know what your monthly payment will be now, so you can factor it into your budget. You can also explore repayment options if you need additional help.

If you would like to explore other deferral or forbearance options, you can do so through your online account under “Refund Options”. You can also speak directly to Aidvantage at 800-722-1300.

FAQs

Did Navient become Aidvantage?

No. In late 2021, Navient shifted its $5.6 billion student loan workload to Maximus, another federal student loan contractor. Maximus operates its student loan service as Aidvantage.

Should I pay my student loans now or wait 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 some income limits. No official announcement has yet been made. Unless you only have this amount in federal student loans or less, it’s a good idea to plan for repayment now. And, if you’re able, paying while on hiatus can reduce your loan principal amount, saving you money on interest when payments resume.

If you are a teacher, healthcare worker, firefighter or other public servant, you may be eligible for forgiveness through the expanded Civil Service Loan Forgiveness Program. Since the changes made last October, the PSLF has identified more than 113,000 borrowers eligible for loan cancellation. If you are eligible for PSLF or were on an income-based repayment plan, which gives you forgiveness after 20 to 25 years of payments, each month of suspended payments counts toward your loan forgiveness goal. So you have to plan for repayment, but there is little benefit to making payments during the freeze.

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