Navient now out of federal student loan servicing business

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Wilmington-based Navient announced its proposal to transfer the loan servicing of 5.6 million Department of Education-owned student loan accounts to Maximus has received all necessary approvals.

Effective Wednesday, Maximus replaces Navient as the contractor to the Department of Education.

The transfer of the portfolio does not affect Navient’s Delaware headcount as servicing operations are done  out of state.

Navient and Maximus are focused on continuing to provide high-quality service to borrowers as they move to Maximus’s servicing division, Advantage, by year-end, after a series of communications to borrowers.

The loans will remain on the same student loan servicing technology platform, owned by Fiserv, and about 800 Navient employees who had previously worked on the Department of Education loan servicing team will transfer to Maximus. For more information for borrowers, visit navient.com/aidvantage.  

Information for investors is available at navient.com/investors.

Navient is a  provider of education loan management and business processing solutions for education, healthcare, and government clients at the federal, state, and local levels.

The agreement allows Navient to exit a business where it has drawn fire for its collection practices, with governments filing lawsuits. Navient has strongly defended its practices,

 

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