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Navient to Aidvantage - Update on credit reports for anyone yet?

aWakening69
Established Member

Navient to Aidvantage - Update on credit reports for anyone yet?

So I'm really stressing over the reporting aspect of the change from Navient to Aidvantage. We are looking to start the house-buying process potentially as soon as a couple of weeks from now, and really can't afford any unexpected credit score drops or alterations. 

 

In terms of this specific service provider switch (which obviously I didn't request), the account number, payment amount, pay date and even the basic structure of their website are all exactly the same. Is there a chance that my credit reporting line changes from "US Dept of Education/Navient" to "US Dept of Education/Aidvantage" and there's no closing of the account and no new opening of an account? 

 

Has anyone seen the change take place on their credit reports yet? 

Message 1 of 17
16 REPLIES 16
krisssmmm
Regular Contributor

Re: Navient to Aidvantage - Update on credit reports for anyone yet?

I haven't seen this on my report yet, but I wonder if it's bc of the pause in payments for federal loans. 

Message 2 of 17
aWakening69
Established Member

Re: Navient to Aidvantage - Update on credit reports for anyone yet?

While that's certainly possible, because we're planning on buying a house, I've been paying mine for the last several months, so that it will go by the actual payment instead of 1% of the total debt. 

So I had been getting monthly updates from Navient, but would certainly be happy if NOTHING changed for a few months until we're done with the house-buying process. It's adding stress. 

Message 3 of 17
ccquest
Established Contributor

Re: Navient to Aidvantage - Update on credit reports for anyone yet?

I think it'll close and open as Navient sold the whole package deal off. But each should show the same open information I believe and it shouldn't have a negative impact.

That said, it should be really to explain to anyone looking at your report no? There's plenty of news about it and each way would show it's from US DOE and the payment plans are the same either way so nothing in your financial picture is changing.
as of 3/24/22
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Message 4 of 17
yoshee08
Valued Member

Re: Navient to Aidvantage - Update on credit reports for anyone yet?

Standard procedure for accounts that are transferred is to mark them as closed and transferred, and then once the new lender reports they will.be marked as opened without having the impact of a new account. They will simply carry over the previous information from the old account. 

 

Similar to what happens when your mortgage is sold to someone else

Current Score as of 04/14/2022:

Inquiries from 24/12 months as of 05/16/2022:
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Message 5 of 17
aWakening69
Established Member

Re: Navient to Aidvantage - Update on credit reports for anyone yet?

 


@yoshee08 wrote:

Standard procedure for accounts that are transferred is to mark them as closed and transferred, and then once the new lender reports they will.be marked as opened without having the impact of a new account. They will simply carry over the previous information from the old account. 

 

Similar to what happens when your mortgage is sold to someone else


I'm praying this is right, as I might be going through a mortgage loan process at the precise time this things gets reported. I'm a nervous wreck! 

Message 6 of 17
calyx
Super Contributor

Re: Navient to Aidvantage - Update on credit reports for anyone yet?


@aWakening69 wrote:

 


@yoshee08 wrote:

Standard procedure for accounts that are transferred is to mark them as closed and transferred, and then once the new lender reports they will.be marked as opened without having the impact of a new account. They will simply carry over the previous information from the old account. 

 

Similar to what happens when your mortgage is sold to someone else


I'm praying this is right, as I might be going through a mortgage loan process at the precise time this things gets reported. I'm a nervous wreck! 


@yoshee08is correct - they should appear with the same opening date and not hurt your score by appearing as "new".
I've had one CRA remove my original (closed) loan when the new one reported (so there is a single loan instead of multiple transferred loans), but the new ones always had the original open date.

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Message 7 of 17
aWakening69
Established Member

Re: Navient to Aidvantage - Update on credit reports for anyone yet?


@calyx wrote:

@aWakening69 wrote:

 


@yoshee08 wrote:

Standard procedure for accounts that are transferred is to mark them as closed and transferred, and then once the new lender reports they will.be marked as opened without having the impact of a new account. They will simply carry over the previous information from the old account. 

 

Similar to what happens when your mortgage is sold to someone else


I'm praying this is right, as I might be going through a mortgage loan process at the precise time this things gets reported. I'm a nervous wreck! 


@yoshee08is correct - they should appear with the same opening date and not hurt your score by appearing as "new".
I've had one CRA remove my original (closed) loan when the new one reported (so there is a single loan instead of multiple transferred loans), but the new ones always had the original open date.


So it all essentially happens on one fell swoop? There's no gap where one goes away and the other hasn't appeared? We're looking at a house. . . . today, and I'm fearful these changes will occur at the end of this month. 

Message 8 of 17
yoshee08
Valued Member

Re: Navient to Aidvantage - Update on credit reports for anyone yet?

Generally the original lender updates their account status the next update month (January for example) but the other lender may take a month or two to report. Its not an instantaneous process but not a dramatic one. 

 

 

For those applying for mortgage, they will run your credit and go based on what is there "now". They then will ask you if there are any other debts that you are obligated to that did not appear (such as a loan that isn't reported) and in this section you can tell the bank that the student loans are indeed open. Talk to the mortgage lender and they will know what to do and what numbers to include.

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Inquiries from 24/12 months as of 05/16/2022:
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Message 9 of 17
aWakening69
Established Member

Re: Navient to Aidvantage - Update on credit reports for anyone yet?

Monthly statement from Aidvantage hit my email box this morning. Usually credit reporting comes around the same time. Usually Navient reported on the 30th. 

Also, starting the mortgage approval process *checks note* TOMORROW. So let's hope for a smooth credit report transition on these student loans in the next couple days. 

Message 10 of 17
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