It actually went into effect late last year, but flew under the radar as student loan payments were on a pandemic hiatus. However, with payments set to resume, troubleshooters are now getting questions about it.
“I have received information that Aidvantage is now acquiring Navient, which was in turn acquired by Sallie Mae,” said Pamela Walters of Bear, Delaware. “Well, now I’m really confused.”
The same is true of many other student borrowers. So here’s what you need to know.
“Navient has faced some regulatory issues over the past few years,” said financial analyst and consultant Chuck Minnich of Foundation Capital Management, LLC.
Navient, one of the nation’s largest student loan servicers, has agreed to forgive $1.7 billion in debt to resolve allegations of unfair, fraudulent practices and robbery loans.
“So Navient decided to go out of business and transfer their federal loans to Aidvantage,” he said.
The transfer began last fall and the website was changed for borrowers in late 2021.
But many people were not aware of this and are now experiencing false hopes.
“A lot of people log into their Navient website and see a zero balance,” he said. “It turned out to be a cruel joke because the loan balance was just transferred to Aidvantage.”
Here’s what borrowers should do now before loan payments resume in September: Go to the Aidvantage website and log in with your Navient credentials.
“There were some issues with 5.6 million transferred loans so you should make sure everything is correct before payments start whenever that is the case.”
Notably, Navient transferred federal loans on behalf of the US Department of Education. Navient still owns and services other loans and many borrowers, so some may have to pay both Navient and Aidvantage.
It is best to log in to both websites now. And if your financial situation has changed since the loan repayment options were last reviewed, consider applying through Aidvantage now.
While loans administered on behalf of the US Department of Education were transferred to another service provider last year, Navient owns and manages other student loans. While we cannot share information about a customer without their express permission, our customer advocates will reach out to the viewer to help with questions and explore payment options.
Many student borrowers have two types of loans: those owned by the US Department of Education (DOE) and loans owned by private commercial companies. Aidvantage only services DOE loans. Aidvantage does not, and has never, serviced loans owned by private commercial entities. Last year, Aidvantage took over credit administration for DOE loans previously serviced by Navient. To ease borrowers’ transition, we have worked to keep these DOE loans on the same service system with all borrower information being transferred seamlessly. We’ve also structured the transition so that borrowers with an existing online account can keep their credentials, streamlining their move to Aidvantage. Borrowers can verify the servicer(s) of their loans through the National Student Loan Data System at StudentAid.gov, a DOE-maintained database of all state student loan debt.
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https://6abc.com/student-loans-2022-navient-settlement-loan-transfer-aidvantage-help/12046718/ Millions of student loans being serviced by new company called Aidvantage: What you should know