Wait, where have my student loans gone?

What is going on

If Navient was your federal lending service, your loans were transferred to Aidvantage.

Why it matters

With the federal loan break coming to an end in September, you’ll want to learn how to log into Aidvantage’s website to view your student loan account.

What’s next

The payment break can be extended again, but we recommend that you verify your Aidvantage account now, just in case.

Have you tried to login to your student loan lately? Borrowers who had federal student loans from Navient may be shocked to see their loans have disappeared. But these federal student loans haven’t gone away — you probably just have a new loan manager.

In 2021, Navient left federal student loan services and transferred his 5.6 million student loan caseload to Aidvantage, which is owned by student loan giant Maximus.

Federal student loan repayments have been paused for more than two years since the start of the pandemic — and it’s possible that the break is extended again† But since payments are currently resuming in September, it’s a good idea to log into your student loan account now, especially if you haven’t checked in since the payment freeze started.

Here’s everything you need to know about what happened to Navient and how to log in to your new Aidvantage student loan account.

Why did Navient leave the student loan industry?

Navient has long been under fire from the Consumer Financial Protection Bureau, which sued the loan manager in 2017 for alleging that the company had forced borrowers into expensive subprime private loans that they could not repay. In January, Navient canceled $1.7 billion in private student loans for nearly 66,000 borrowers after it came under scrutiny for abuse and deceptive practices, including targeting students the company reportedly knew they couldn’t. repay loans

In 2020, the United States Department of Education announced changes to its loan service in an effort to modernize the federal student loan system. As part of the Next Gen Initiative, the Department of Education expanded its partnership with five of the 10 current loan managers, who would continue to provide federal student loans, but under stricter government regulations. Navient, along with FedLoan and Granite State, have elected to end their participation in federal student loans at the end of 2021.

Michael Lux, a student loan expert, attorney and founder of the Student Loan Sherpa, said that “the increase in federal regulation and government oversight of federal loan service is almost certainly responsible for Navient’s departure.” .”

What does Navient’s departure mean for borrowers?

If your federal student loans were previously administered by Navient, here’s what you need to know:

1. Aidvantage is your new student loan manager

By now you should have been notified of this change by post or email from Navient, Aidvantage and the Ministry of Education. If you have not received a notification, please log into your existing Navient account and double-check your contact details to ensure they are correct. Even if your address was out of date, you should be able to log in to your new account.

2. You can access your Aidvantage account with your Navient credentials

When you try to log into Navient, you will find a balance of $0 — this balance simply shows that your loans were purchased by Aidvantage. To log in to your new account, go to aidvantage.com and enter your Navient login information.

The process is almost identical to that of Navient. After entering your username and password, you will be asked to enter your Social Security number or account number and date of birth to confirm your identity. From there, you will be taken to the Aidvantage account homepage, which looks just like the Navient landing page, down to the navigation options on the left.

If you do not remember your login details, select “Forgot User ID” or “Forgot Password” and confirm a personal identification question to receive a new one by email. If you still can’t get in or can’t access the email on file, please contact Aidvantage for assistance at 800-722-1300.

3. Your payment preferences should be the same, but worth checking

All the payment terms you set up with Navient – automatic payment, deferral, means-tested repayment plans – should have been seamlessly transferred to Aidvantage. Since federal student loan payments have been suspended for more than 20 months, you should of course review payment details, especially as the end of forbearance approaches. And if your work situation has changed since you last reviewed your loan repayment options, you may want to apply for means-tested repayment or other repayment options through Aidvantage now so you’re ready to go when repayment starts in September.

So after you sign up with Aidvantage, you should find that your preferred payment method and autopay selection have been transferred, along with your payment history and fully paid off loans.

4. Redemption is currently scheduled for September 2022

Federal student loan payments will remain suspended until August 31. If you haven’t paid your loans during the grace period, make sure you know what your monthly payment will be now so you can budget for it. You can also review refund options if you need additional assistance.

If you would like to explore further deferral or postponement options, you can do so through your online account under “Refund Options”. You can also reach Aidvantage directly at 800-722-1300.

Frequently Asked Questions

Has Navient become Aidvantage?

No. In late 2021, Navient transferred its $5.6 billion student loan caseload to Maximus, another federal student loan contractor. Maximus operates its student loans under the name Aidvantage.

Should I pay my student loans now or wait for the loan to be waived?

There is no guarantee of widespread student loan forgiveness, but the latest news indicates that the Biden administration may be considering $10,000 in federal student loans, with some income restrictions. No official announcements have been made yet. Unless you only have this amount of federal student loans or less, it’s smart to plan for repayment now. And, if you’re able, paying during the break can lower your principal loan amount so you can save money on interest when payments resume.

If you are a teacher, health professional, firefighter, or other public servant, you may be eligible for forgiveness through the comprehensive public loan forgiveness program. Since the changes were made last October, the PSLF has identified more than 113,000 borrowers who are eligible for loan cancellation. If you qualify for the PSLF or had an income-driven repayment plan that offers forgiveness after 20 – 25 years of payments, each month of interrupted payments counts toward your loan forgiveness goal. So you have to plan for a refund, but it makes little sense to pay during the freeze.