Savanna Hoffman
Navient is a student loan servicer that acts as a middleman between borrowers and lenders. The company offers technology-enabled education finance solutions to simplify complex problems and help millions of people achieve success. However, Navient stopped servicing federal student loans in 2021 and is transitioning its student loan servicing to MOHELA, a non-profit, governmental corporation. If your federal loans were held by Navient before December 31, 2021, they were likely transferred to Aidvantage, and you can now manage your loan payments through your StudentAid.gov account.
| Characteristics | Values |
|---|---|
| Student loan servicer | A company that acts as a middleman between borrowers and lenders |
| Federal student loans | No longer serviced by Navient since 2021 |
| Direct Loans with the Department of Education | No longer serviced by Navient since December 31, 2021 |
| New student loans | Available with Earnest Student Loans |
| Refinancing student loans | Available with NaviRefi |
| Applying for scholarships | Available with Going Merry |
| Special financing offers | Available through the Navient Marketplace |
| Private student loans | To be transferred to MOHELA |
| FFELP loans | To be transferred to MOHELA |
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What You'll Learn
- Navient stopped servicing federal student loans in 2021
- Federal student loans previously handled by Navient were transferred to Aidvantage
- Navient customers can now access their accounts through MOHELA
- Navient offers refinancing options for student loans
- Navient provides free digital tools to help students find grants and scholarships
Navient stopped servicing federal student loans in 2021
Navient stopped servicing federal student loans on 31 December 2021. The company faced a ban from the Consumer Financial Protection Bureau (CFPB) in 2024, which prohibited it from re-entering the federal student loan servicing business. Navient was one of the largest student loan servicers in the United States, managing loans for over 12 million borrowers.
If your federal loans were held by Navient before 31 December 2021, they were likely transferred to Aidvantage. You can confirm your current servicer by logging into your StudentAid.gov account or by calling 1-800-4-FED-AID.
Navient has continued to service FFEL Program loans issued by the government but owned by private lenders. It also serves as a private student loan lender. In early 2024, Navient announced that it would transfer its remaining private and FFELP student loan portfolio to MOHELA. This transfer is still ongoing.
As part of the CFPB settlement, Navient must pay $100 million in restitution to borrowers it harmed. The CFPB has not yet provided details on how affected borrowers can apply for or receive this compensation.
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Federal student loans previously handled by Navient were transferred to Aidvantage
The transition was approved by the Federal Student Aid office, and Navient cut ties with the Education Department because it was not making enough profit to justify the headaches it was getting from servicing the accounts. The federal student loan servicing contract was a small part of Navient's business, but it was likely its most problematic area.
If your federal loans were held by Navient before December 31, 2021, they were likely transferred to Aidvantage. You can confirm your current servicer by logging into your StudentAid.gov account or by calling 1-800-4-FED-AID.
To make the transition easier for borrowers, Navient switched contact information, including phone numbers, general mailing addresses, and payment addresses, to Aidvantage's controls. Borrowers can use the login information they used on Navient's website on Aidvantage.com and keep their autopay setup.
After your loan is transferred, log in to Aidvantage.com to review your account and confirm how many loans you have, the loan amounts, payment due dates, and so on. You can also consider enrolling in automatic payments to ensure you don't skip a month and to get a small interest rate discount.
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Navient customers can now access their accounts through MOHELA
If you were a Navient customer, you should have received a welcome letter from MOHELA, letting you know that your loans have been transferred. You can now access your MOHELA online account by visiting servicing.mohela.com. You will need to update your payment addressee information to MOHELA, but your loan terms, interest rates, and account numbers will remain the same.
While your current user ID and password will work on MOHELA's website, you should be prepared for a new online interface and potentially different features or tools for managing your loans. You may also experience some challenges with customer service, as there have been reports of long wait times, inconsistent information, and difficulties accessing online accounts.
It is important to verify that your payment history and loan details have transferred correctly to your MOHELA account. While errors are rare, it is always a good idea to double-check. If you encounter issues during or after the transfer, you can contact MOHELA's customer service for assistance and document all communications.
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Navient offers refinancing options for student loans
Navient is a private student loan servicer that was previously part of Sallie Mae. It also serviced federal student loans until 2021. In 2024, the Consumer Financial Protection Bureau (CFPB) banned Navient from re-entering the federal student loans servicing business.
NaviRefi is designed for people with student loans who want a better rate. It does not charge origination, late payment, or prepayment fees. It also offers loan term flexibility.
Refinancing with Navient may be a good option if its NaviRefi program offers the lowest interest rate. However, borrowers should compare multiple student loan refinance options to ensure they get the best rate they can qualify for. It is important to consider not just interest rates but also repayment options and the flexibility offered to borrowers who struggle to make payments.
Refinancing a student loan can help borrowers get a better rate, remove a cosigner, and combine all loans into one easy payment. It can help them pay more each month with a lower interest rate for faster payoff. Alternatively, they could lower their payments to build up savings, buy a house, or contribute to their retirement. However, borrowers should be aware that refinancing into a private loan means losing benefits associated with federal loans, such as federal Income-Driven Repayment Plans, Economic Hardship Deferment, and Public Service Loan Forgiveness.
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Navient provides free digital tools to help students find grants and scholarships
Navient is a company that previously serviced federal student loans by collecting and tracking payments. However, as of 2021, Navient no longer manages federal student loans. Instead, they now provide free digital tools to help students find grants and scholarships. These tools aim to empower individuals to secure financial aid and awards to fund their education.
Navient's digital platform, Going Merry, simplifies the process of finding and applying for scholarships. It serves as a one-stop shop, enabling students to search for scholarships and grants and compare offers from leading providers. This platform not only benefits students but also scholarship providers, making it simpler for them to create and manage their scholarship programmes.
Additionally, Navient offers easy-to-understand payment options for new student loans. After graduation, they assist individuals in refinancing their student loans to obtain a better rate. Their NaviRefi refinancing option is specifically tailored for borrowers seeking improved rates on their student loans. This refinancing option stands out by eliminating origination, late payment, and prepayment fees, offering flexibility in loan terms.
Through its digital tools and resources, Navient streamlines the process of securing financial assistance for education. By leveraging technology, they help students navigate the complex landscape of scholarships, grants, and student loans. This empowers students to make informed decisions and achieve their educational goals without letting financial hurdles stand in their way.
While Navient provides tools to find grants and scholarships, it is important to note that they are no longer a servicer for federal student loans. As of 2024, they are in the process of transferring their remaining student loan portfolio, consisting of private and FFELP loans, to MOHELA. Students previously serviced by Navient can confirm their current loan servicer by logging into their StudentAid.gov account or by contacting the loan servicer contact centres.
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Frequently asked questions
Navient is a company that acts as a middleman between borrowers and lenders.
No, Navient stopped servicing student loans in 2021.
Your student loans have likely been transferred to Aidvantage or MOHELA.
You can confirm your current servicer by logging into your StudentAid.gov account.
