Federal student loan repayments have remained suspended for nearly 2 yrs since the pandemic began. Meanwhile, Naivent, formerly one of the largest education loan servicing companies in the United States, shifted its workload of 5.6 million student education loans to Maximus, a global administrator of presidency programs. Maximus is really a federal education loan servicer and services former Navient student loans under the name Aidvantage.
If you have federal student education loans, they remain suspended until May 1, 2022 – meaning there are no mandatory payments, accrued interest, or loan collections until then. The Biden administration can also be considering another expansion of the federal student loan break.
That said, if you haven't logged into your federal education loan account recently, you might have questions, especially if your loan officer has changed. Here's all you need to know about removing Navient and the way to log into your Aidvantage account.
Why did Navient exit a student loan business?
Navient is definitely under fire from the Consumer Financial Protection Bureau, which sued the loan manager in 2022, saying the company pushed borrowers into expensive and risky private loans that they could be not able to repay. In January, Navient canceled $1.7 billion in private student loans for nearly 66,000 borrowers after coming under scrutiny for engaging in abusive and deceptive practices, including targeting students whose company knew they couldn't repay their loans.
In 2022, the U.S. Department of Education announced loan servicing software changes in an effort to modernize the government student loan system. As part of the Next Gen initiative, the Department of Education expanded its partnership with five of the present 10 loan servicers, who would continue to service federal student education loans, but under stricter government regulations. Navient, together with FedLoan and Granite State, have elected to finish their participation within the federal education loan service at the end of 2022.
Michael Lux, student loan expert, attorney and founding father of The Student Loan Sherpa, said “increased federal regulation and government scrutiny of federal loan servicing is almost certainly to blame for Navient's departure.” .
What does Navient's departure mean for borrowers?
If your loans were managed by Navient, here's what you should know:
1. Aidvantage is the new loan manager
By you now must have been notified of the change by post or email from Navient, Aidvantage and also the Department of Education. If you didn't receive a notification, you should log into your existing Navient account and double-check your contact details to make sure it is correct. Even if your address was outdated, you should be in a position to log in for your new account.
2. You can login to your Aidvantage account with your Navient credentials
If you attempt to log into Navient, you will find a balance of $0 – this balance simply suggests that your loans have been purchased by Aidvantage. To sign in for your new account, visit www.aidvantage.com and enter your Navient login information.
The process is nearly just like that of Navient. Once you've entered your password, you'll be prompted to enter your ssn or account number and date of birth to confirm your identity. From there, you will be come to the Aidvantage account homepage, which looks like the Navient homepage, right down to the left navigation options.
If you do not remember your login information, select “Forgot User ID” or “Forgot Password” and ensure a personal challenge question to get a new one by email. If you'll still cannot enter or you no longer have access to the registered email, contact Aidvantage for assistance at 800-722-1300.
3. Your repayment preferences should be the same
Any payment terms you've set up with Navient (auto-pay, deferral, income-based repayment plans) should have been seamlessly used in Aidvantage. Of course, since federal student loan payments happen to be suspended in excess of 20 months, you may need to revisit the payment details, especially as you approach no more the forbearance. And, in case your work situation has changed because you last checked out the loan repayment options, you are able to apply for income-contingent repayment or any other repayment options through Aidvantage now, so you're all set. when repayment begins in May 2022.
So, after logging into Aidvantage, you should discover that your chosen payment method and automatic payment selection have been transferred, along with payment history and an eye on fully repaid loans.
4. Get ready for repayment in 2022
Currently, federal education loan repayment is on pause until May 2022. However, this the refund freeze might be extended.
If you have not repaid your loans throughout the forbearance period, be sure to take a look at payment options now so you're ready to go in May. Check your payment method, make sure you know your minimum monthly payment, and explore repayment options if you need further assistance. If you would like to explore other deferral or forbearance options, you can do so using your internet account under “Refund Options”. You can also speak straight to Aidvantage at 800-722-1300.
Does Navient become Aidvantage?
No. In late 2022, Navient shifted its $5.6 billion education loan workload to Maximus, another federal student loan contractor. Maximus operates its student loan service as Aidvantage.
Will I receive tax documents from Navient or Aidvantage?
If Aidvantage is your new student loan provider, you will be able to download the 1098-E tax form, which shows the quantity of interest you paid on your education loan, by going to the left panel deciding on “Tax Statements”.
Your old tax slips must have been imported from Navient to Aidvantage. For example, I had been able to view my 2022 and 2022 tax documents through Aidvantage. Logging into Navient only allowed me to gain access to my 2022 tax documents.
Should I prepare for repayment now or wait to see if loan forgiveness is accepted?
If you are trying to follow student loan cancellation policies, this is a brief summary. This week, the Department of Education identified 100,000 borrowers with a combined total of $6.2 billion in student loan debt who're eligible for debt cancellation, because of changes towards the program. cancellation of civil service loans last October.
That said, only a few student loan holders are currently entitled to loan forgiveness. Although the refund break may be extended, it's a wise decision to create a plan to get ready for the refund now, just in case. You can explore income-based repayment plans and other repayment options through your Aidvantage account.
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