Navient Overview: What to know about this student loan servicer

Originally established in 1973 as a division of the Student Loan Marketing Association, otherwise known as Sallie Mae, Navient used to be one of the largest federal student loan servicers. Though the company ended its contract with the Department of Education in late 2021, it continued servicing private student loans and FFELP loans.

However, that may change soon. Navient recently announced its plans to transfer the rest of its student loan servicing portfolio over to MOHELA.

What happened to Navient student loans?

Navient is a student loan servicer — a company that acts as a middleman between borrowers and lenders. It handles administrative tasks such as sending bills, collecting payments, enrolling borrowers in repayment plans, reporting account activity to the consumer credit bureaus and helping customers resolve issues.

The company serviced federal student loans for nearly a decade, formally cutting ties 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.

Federal 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 in which it outlined its plan to transfer its remaining student loan servicing portfolio to MOHELA. David Yowan, president and CEO of Navient, said the decision came as a result of the company’s efforts to simplify its business to reduce expenses.

“Over the longer-term, we believe these actions will increase the value shareholders derive from our loan portfolios and the returns we can achieve on business-building investments,” Yowan said. “As we embark on this important work, we also remain focused on running and growing our business and meeting the needs of our borrowers and clients. We look forward to continuing to provide updates as we establish a new foundation for Navient’s future success.”

Lawsuits against Navient

Beginning in 2017, the CFPB, several states and a group of teachers filed a handful of lawsuits against Navient asserting harmful and deceptive practices. According to the lawsuits, the servicer allegedly steered borrowers toward expensive options and mismanaged accounts by incorrectly applying or allocating payments and reported loan payments incorrectly to consumer credit bureaus.

If Navient services your student loans, track your payments to ensure they’re processed correctly. You can report issues to the servicer directly. If Navient doesn’t resolve the issue, you can file a complaint with the CFPB or the Department of Education.

You can also file a complaint with your state attorney general’s office or state consumer protection office.

What to do if you have student loans with Navient

If your federal student loan was serviced by Navient, it was likely transferred to Aidvantage after its contract expired in December 2021. To find your federal student loan servicer or FFELP loan servicer, log in to the Federal Student Aid website using your FSA ID. You’ll find details about your federal student loans, including your “Current ED servicer.”

You can also log in to the National Student Loan Data System (NSLDS) to find out who services your student loans, or call the Federal Student Aid Information Center at 800-4-FED-AID (800-433-3243) for details.

Private student loans work differently and won’t be listed on the NSLDS database or the FSA Information Center. To find out who services your private student loans, check your credit report to see who’s listed as the loan holder.

If you have private student loans or FFELP loans with Navient, you should continue to make payments as usual to the lender. Borrowers will get notified via mail or email once the transfer process begins. To ensure you don’t miss out on any communications, update your contact information by calling Navient or logging into your student loan account.

How to contact Navient

You can contact Navient during its normal hours of operation, which are Monday through Thursday from 8 a.m. to 9 p.m. ET and Friday from 8 a.m. to 8 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 be exiting the student loan servicing industry soon. Though federal student loans have already been transferred to Aidvantage, FFELP and private student loans are still being serviced by the company. As a borrower, there are a few options you can explore during this time, including consolidating or refinancing the loans. Just make sure to shop around for the best refinance rates before you apply.

However, if you’re satisfied with how your loans are being serviced, you can wait for the transfer to take effect, as repayment terms and current interest rates should remain unchanged.

Frequently asked questions

• What types of student loans does Navient service?

  Navient services private student loans and some FFELP loans.

• Can you switch to another student loan servicer?

  If you have federal student loans, you can switch servicers by consolidating your loans. If you have private loans, you can switch servicers by refinancing your loans with another lender.

• What services does Navient offer?

  Navient offers various services besides general account management. These include student loan basics videos and customer service to answer questions.