Navient overview: What to know about the former student loan servicer
Key takeaways
- Navient served as a federal student loans servicer in the past, but it has faced legal allegations of loan mismanagement in recent years.
- The company stopped servicing most federal student loans in December 2021. In July 2024, Navient began transferring its remaining student loan servicing portfolio to MOHELA.
- Navient reached a settlement with the Consumer Financial Protection Bureau in September 2024 that banned Navient from servicing federal student loans.
- Borrowers who still have accounts with the lender should keep their contact information updated to ensure they don’t miss out any crucial communication regarding the transfer and new account details.
Navient is a financial services company and former federal and private student loan servicer. The company faced a lawsuit from the Consumer Financial Protection Bureau (CFPB) for federal loan mismanagement. In September 2024, the company reached a settlement with the CFPB, and as a result, Navient was banned from servicing federal student loans.
Any federal and private student loans serviced by Navient have been transferred to other servicers. The company still offers a private student loan marketplace and other financial services, but company representatives have announced restructuring plans.
What happened to Navient student loans?
Navient is probably best known as a student loan servicer — a company that acts as a middleman between borrowers and lenders. However, as of this month, the company no longer services student loans.
The company serviced federal student loans for nearly a decade. It stopped servicing Direct Loans with the Department of Education in Dec. 31, 2021. This came after a myriad of issues, including account mismanagement and inaccurate payment collections, which led to a series of since-settled lawsuits.
Direct student loans formerly serviced by Navient were transferred to Aidvantage – another student loan servicer. However, the company continued servicing some FFELP loans and private student loans.
On Jan. 30, 2024, Navient issued a statement outlining its plan to transfer its remaining student loan servicing portfolio to MOHELA, and the plan was initiated in July 2024.
A settlement reached by Navient and the CFPB on Sept. 12, 2024 means the servicer is no longer legally allowed to service federal student loans. Existing plans to transfer Navient’s remaining loan portfolio to MOHELA will go ahead, with MOHELA taking over on October 21.
In addition, Navient must pay $120 million in restitution and penalties, including $100 million for affected borrowers and $20 million to the CFPB’s victim relief fund. Eligible borrowers will receive checks from the CFPB by mail.
As a financial services company, Navient does more than service student loans — for example they also provide payment processing services for businesses.
Going forward, the company plans to cut some of its services as a part of a new strategic business plan. On August 13, 2024, Navient announced plans to sell its healthcare services businesses as a part of its plan to simplify operations. In a press release about the sale, the financial services company also announced that it may sell its government services businesses, but it is not yet decided.
What to do if you have student loans with Navient
If you have FFELP loans serviced by Navient, the process to transfer servicing to MOHELA began in July 2024, with MOHELA officially taking over on October 21. You can confirm your federal student loan servicer by logging in to the Federal Student Aid website using your FSA ID. Navigate to the section listing “Current ED servicer,” to confirm your federal student loan servicer.
If you have a private student loan through Navient, continue making monthly payments as scheduled. If you are having trouble making payments, the lender has several options to help you adjust payments — including deferment and a rate reduction program. Call the lender to discuss your options.
It’s important to note that MOHELA has faced some of its own legal allegations in recent years. The American Federation of Teachers filed a lawsuit against the servicer alleging harm to borrowers through loan mismanagement. This allegation centers around mismanagement affecting those applying for the Public Student Loan Forgiveness Program, specifically.
If you don’t want your loan serviced by MOHELA or Navient anymore, consider refinancing your student loans with a different lender. Refinancing makes the most sense when you can get a refinance rate lower than your current one. However, in some cases, refinancing makes sense if you are unhappy with your student loan servicer or lender.
How to contact Navient
You can contact Navient during its normal hours of operation, which are Monday from 8 a.m. to 9 p.m. ET, Tuesday and Wednesday from 8 a.m. to 8 p.m. ET, and Thursday and Friday from 8 a.m. to 6 p.m. ET. Contact details vary depending on your student loan program. Toll-free phone numbers for each program are:
- FFELP and HEAL: 888-272-5543.
- U.S. Department of Education student loans: 800-722-1300.
- Private student loans: 888-272-5543.
- Military service members: 855-284-4879.
For TDD phone numbers, international phone numbers, fax numbers and addresses, visit Navient’s contact page.
The bottom line
Navient will no longer service student loans. If you had loans with Navient, you may be reconsidering your student loan servicing options. Your options include consolidating or refinancing your loans with another lender. You may also decide to stick with the lender to which Navient transferred your loans, keeping your current interest rate and loan terms.
Should you face issues with Navient or any loan servicer, reach out for help. You can file a complaint anytime with the CFPB.
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