Wait, What Happened to My Student Loans?

What’s taking place

If Navient was your federal mortgage servicer, your loans have been transferred to Aidvantage.

Why it issues

With the federal mortgage pause ending in September, you may need to know the way to log into Aidvantage’s web site to view your pupil mortgage account.

What’s subsequent

The cost pause may very well be prolonged once more, however we beneficial verifying your Aidvantage account now, simply in case.

Have you logged into your pupil mortgage account recently? If you had Navient federal pupil loans, it’s possible you’ll be shocked to discover your loans have vanished. But your pupil loans aren’t really gone — they moved to a brand new mortgage servicer.

In 2021, Navient exited the federal pupil mortgage servicing business, transferring its caseload of 5.6 million pupil loans to Aidvantage, which is owned by pupil mortgage big Maximus.

Federal pupil mortgage repayments have been paused for over two years, for the reason that begin of the pandemic — and it is doable the pause will be extended again. But, with funds at the moment set to resume in September, it is a good suggestion to log into your pupil mortgage account now, particularly if you have not checked in for the reason that cost freeze started.

Here’s the whole lot you want to learn about what occurred to Navient, and the way to log in to your new Aidvantage student loan account.

Why did Navient exit the scholar mortgage business?

Navient was lengthy beneath fireplace from the Consumer Financial Protection Bureau, which sued the loan servicer in 2017: It claimed that the corporate had pushed debtors into pricey, subprime non-public loans they might be unable to repay. In January, Navient canceled $1.7 billion in non-public pupil loans for practically 66,000 debtors after coming beneath scrutiny for partaking in abusive and misleading practices, together with concentrating on college students the corporate allegedly knew could not pay back loans

In 2020, the US Department of Education introduced modifications to mortgage servicing in an effort to modernize the federal pupil mortgage system. As a part of the Next Gen Initiative, the Department of Education prolonged its partnership with 5 of the ten present mortgage servicers, which might proceed servicing federal pupil loans, however beneath stricter authorities laws. Navient, together with FedLoan and Granite State, opted to finish their participation in federal pupil mortgage servicing on the finish of 2021.

Michael Lux, a pupil mortgage skilled, legal professional and founding father of the Student Loan Sherpa, stated that the “improve in federal regulation and authorities scrutiny over federal mortgage servicing is sort of actually to blame for Navient’s departure.” 

What does Navient’s departure imply for debtors?

If your federal pupil loans have been beforehand serviced by Navient, here is what you want to know:

1. Aidvantage is your new pupil mortgage servicer

By now, you must have been notified of this transformation by mail or e mail from Navient, Aidvantage and the Department of Education. If you haven’t acquired a notification, you must log in to your current Navient account and double-check your contact data to be certain that it is appropriate. Even in case your tackle was outdated, you need to be ready to log in to your new account. 

2. You can entry your Aidvantage account along with your Navient credentials

If you strive to log in to Navient, you may discover a $0 steadiness — this steadiness is solely displaying that your loans have been bought by Aidvantage. To log in to your new account, go to aidvantage.com and enter your Navient login data.

The course of is almost similar to Navient’s. Once you enter your login and password, you may be prompted to enter your Social Security quantity or account quantity and date of start to verify your id. From there, you may be taken to the Aidvantage account residence web page, which seems to be identical to the Navient touchdown web page, proper down to the left-hand navigation choices.

If you possibly can’t bear in mind your login data, choose “Forgot consumer ID” or “Forgot password” and ensure a private identification query to have a brand new one emailed to you. If you continue to cannot get in or not have entry to the e-mail on file, attain out to Aidvantage for help at 800-722-1300.

3. Your cost preferences must be the identical, nevertheless it’s value checking

Any cost phrases you arrange with Navient — autopay, deferment, income-driven repayment plans — ought to have transferred seamlessly to Aidvantage. Of course, since federal pupil mortgage funds have been paused for over 20 months, it’s possible you’ll want to evaluate the cost particulars, significantly with the top of forbearance approaching. And, in case your job scenario has modified because you final reviewed your mortgage reimbursement choices, it’s your decision to apply for income-driven reimbursement or different reimbursement choices by means of Aidvantage now, so that you’re prepared to go when reimbursement begins in September.

So after logging in to Aidvantage, you must discover that your most well-liked cost methodology and autopay choice have transferred over, alongside along with your cost historical past and report of loans paid in full.

4. Repayment is at the moment scheduled for September 2022

Federal pupil mortgage funds stay on pause by means of Aug. 31. If you have not already been paying your loans throughout the forbearance interval, ensure you understand how what your month-to-month cost will probably be now, so you possibly can issue this into your funds. You may also discover the reimbursement choices for those who want extra help. 

If you need to discover additional deferment or forbearance choices, you are able to do this by means of your account on-line beneath “Repayment choices.” You may also converse to Aidvantage straight at 800-722-1300.

FAQs

Did Navient turn out to be Aidvantage?

No. At the top of 2021, Navient transferred its caseload of 5.6 billion in pupil loans to Maximus, one other federal pupil mortgage contractor. Maximus is working its pupil mortgage servicing beneath the title Aidvantage.

Should I pay my pupil loans now or look forward to mortgage forgiveness?

There’s no assure of widespread pupil mortgage forgiveness, however the newest information signifies that the Biden administration could also be contemplating $10,000 in federal student loan relief, with some revenue limitations. No official bulletins have been made but. Unless you will have solely this quantity in federal pupil loans or much less, it’s smart to plan for repayment now. And, for those who’re ready to, paying throughout the pause can decrease your principal mortgage quantity, serving to you get monetary savings on curiosity when funds resume.

If you are a instructor, healthcare employee, firefighter or different public servant, it’s possible you’ll be eligible for forgiveness by means of the expanded Public Service Loan Forgiveness program. Since modifications have been made final October, the PSLF has recognized greater than 113,000 debtors eligible for mortgage cancelation. If you are eligible for the PSLF or have been on an income-driven reimbursement plan, which presents you forgiveness after 20 – 25 years of funds, every month of paused funds counts in direction of your mortgage forgiveness purpose. So, you must plan for reimbursement, however there’s little profit in making funds throughout the freeze.

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