Friday, October 8, 2021
Since the start of the COVID-19 pandemic student loan programs have been subject to many changes, including multiple servicers transferring their loan portfolios to other companies. Navient, one of the largest federal student loan servicers, announced last month that it will transfer its student loan portfolio to Maximus, another servicer affiliated with the U.S. Department of Education (DOE), pending DOE approval.
Navient’s decision to transfer its loans to a new servicer is sure to cause some confusion. If you are one of the 6 million people who has a federal student loan serviced through Navient, here’s what you should do to be prepared:
- Save your loan information. Write down any information from your Navient account relating to your payment history, loan balances, and yearly statements.
- Be on the lookout for communications about your transfer. The DOE, Navient, and Maximus will notify you when the transfer is complete and inform you of next steps. To make sure that you receive these messages, log into your Navient account and check your contact information to verify it’s correct.
- Ensure your loan information is transferred correctly. Once your loans are transferred to the new servicers, make sure your loan balance is accurate and that all special arrangements transferred automatically.
- After the transfer, address your payments to the new servicer. Once your loans are transferred and you have double-checked that the loan information is accurate, you will need to address your payments to the new servicing company. If you autopay your student loans, make sure you verify the correct banking information so you don’t miss a payment.
Be on the lookout for scammers looking to take advantage. Scammers often exploit potentially confusing financial situations to steal your money. Never give out your personal or financial information unless you’re sure of the other party’s validity. If you think you may be the victim of a scam, call our office at 877-5-NO-SCAM.