First Data and Navient, Wilmington, announced a strategic agreement that calls for First Data to become the primary provider of technology solutions for Navient’s federal and private education loans.
Financial terms were not announced.
The agreement expands on First Data and Navient’s longstanding partnership to support private student loans, a release stated.
As a part of the agreement, First Data will acquire Navient’s student loan technology platform. Navient information technology staff who manage the platform will join First Data.
First Data is one of the world’s largest providers of credit processing services, with more than a billion accounts on file.
First Data is establishing First Data Education, which will be led by Jeff Whorley. Jeff has been Group President, Asset Management and Servicing at Navient and will become a member of First Data’s Management Committee.
Navient will continue to provide its leading customer service, data insights, default prevention, back office support, and other services.
“We are delighted that Navient has chosen First Data as its partner. Student loan technology is a natural adjacency for First Data, and this agreement significantly expands our capabilities in this sector,” said Andrew Gelb, executive vice president, head of Global Financial Solutions, First Data. “Navient’s platform is well-proven, and we welcome the Navient employees joining our company.”
“This agreement with First Data enhances our ability to bring agility, scalability, and innovation across our digital technologies enabling us to continue to deliver better outcomes for the student borrowers we serve,” said Patricia Lawicki, executive vice president and chief information officer, Navient. “First Data understands our business, and this agreement also gives us the ability to create a more effective long-term cost structure for our business.”
Navient will continue to service loans for its 12 million federal and private education loan customers, including those serviced under a contract with the U.S. Department of Education.
The agreement is expected to close in the third quarter, subject to closing conditions.
