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Navient will stop servicing federal student loans

kiea
Frequent Contributor

Navient will stop servicing federal student loans

I thought this information was interesting being that all of school loans are with Navient.  It will be interesting to see how the government handles this.

 

https://www.businessinsider.com/student-loan-company-navient-asked-permission-to-shut-down-2021-9

Start of rebuild July 2021

October 2021
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calyx
Super Contributor

Navient also exiting student loan servicing (article)

Catching up on the news after a busy week - along with Fedloan, Navient is also jumping ship

 

CNN link here (there are many)

 

"Embattled student loan servicer Navient announced this week that it is getting out of the federal student loan business, pending government approval.

If it gets the authorization... Navient plans to transfer those loans to Maximus..."
 
Navient is one of the biggest servicers (6 million borrowers), with them and Fedloan (10 million borrows) exiting (as well as Granite, which handles ~1m) thinks will definitely be interesting for borrowers.

 

I know a number of servicers have told Congress that they are not prepared to deal with payments resuming (staffing issues), and with some forgiveness possible/being talked about, I wonder if it's just becoming unprofitable as well.

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