As federal student loan forbearance reaches the end of its extension come Jan 31, 2022, there is a world of unknowns in the industry of servicing the $1.59 trillion of federal student loan debt. More specifically, Navient announced on Sept. 28th, 2021 that it will be stepping back from its relationship with the Department of Education and transferring 6 million borrowers to another servicer, the most likely of them being Maximus.
Student loan servicing transfers aren’t unheard of. Back in 2015, MOHELA acquired all federal loans that were previously handled by Aspire Resource. Unfortunately, this change of hands caused massive issues such as false delinquency reports, changes in payment schedules, and lost document history to name a few.
While we have minimal sway in how loans will be transferred over the next couple months, there is a list of proactive to-dos to make sure you hedge yourself against any setbacks mentioned above:
1. Stay tuned and check your email correspondence. You want to make sure you know what is happening with your loans in this transitionary period.
- Download and keep a copy of ALL records, including payment history, notices from Navient, types of loans/loan balances, etc.
- Call Navient’s service center at 800-772-1300 for specific questions related to your federal student loans.
Ultimately, prepare for some potential road bumps as the government determines next steps. Understand that regardless of where your Navient loans end up, keeping track of payment progress and understanding how your student loans work will help propel you towards a happy financial life.