The U.S. Department of Education has approved Navient’s request to transition its 5.6 million federal student loan borrowers over to Maximus. Here’s what you need to know about this week’s trends and how they could impact your student loans.
1 current trend within student loans for the week of Oct. 25, 2021
1. Education Department moves forward with Navient transition
Last week the U.S. Department of Education approved Navient’s request to exit federal student loan servicing. With the transfer finalized, Navient will now transition its borrowers over to another federal servicer, Maximus, by the end of 2021. “We are confident this decision is in the best interest of the approximately 5.6 million federal student loan borrowers who will be serviced by Maximus and will provide the stability and high-quality service they deserve,” said Chief Operating Officer Richard Cordray in a statement.
Navient has dealt with multiple lawsuits in recent years due to its alleged mismanagement of borrower accounts. In his statement, Cordray promised that Maximus — along with all federal servicers moving forward — will be held to higher standards for performance, transparency and accountability.
How this affects student loans
If you have a federal student loan currently serviced by Navient, your loan will be transferred to Maximus over the next few months. The details of your loan balance won’t change, and the Department of Education has promised that account login information and automatic payment status will be unaffected. Take the time to double-check your contact information and keep an eye out for information from the Department of Education, Navient or Maximus about the transition.
Here’s how you can get prepared
Whether you’re new to student loans or well into repayment, it’s wise to stay informed about how your student loan rates could change. As 2021 continues, more opportunities for cheaper loans or loan forgiveness could open up; keep an eye on the Bankrate student loans news hub for the latest trends.