Navient receives approval to transfer Department of Education servicing contract to Maximus

Rhea-AI Summary

Navient (Nasdaq: NAVI) announced that its proposal to transfer loan servicing for 5.6 million Department of Education-owned student loan accounts to Maximus has received all necessary approvals. The transfer is effective immediately, with Maximus replacing Navient as the contractor. The transition to Maximus’s servicing division, Aidvantage, will be complete by year-end, ensuring continuity of service for borrowers. Approximately 800 Navient employees will also transfer to Maximus as part of this agreement. For more information, borrowers can visit navient.com/aidvantage.

WILMINGTON, Del., Oct. 20, 2021 (GLOBE NEWSWIRE) -- Navient (Nasdaq: NAVI) announced today that its proposal to transfer the loan servicing of 5.6 million Department of Education-owned student loan accounts to Maximus has received all necessary approvals. Effective today, Maximus replaces Navient as contractor to the Department of Education.

Navient and Maximus are focused on continuing to provide high-quality service to borrowers as they transition to Maximus’s servicing division, Aidvantage, by year end, after a series of communications to borrowers. The loans will remain on the same student loan servicing technology platform, owned by Fiserv, and about 800 Navient employees who had previously worked on the Department of Education loan servicing team will transfer to Maximus. For more information for borrowers, visit navient.com/aidvantage.

Beginning in early 2021, Navient was advised on the transaction by Houlihan Lokey. Information for investors is available at navient.com/investors.

About Navient
Navient (Nasdaq: NAVI) is a leading provider of education loan management and business processing solutions for education, healthcare, and government clients at the federal, state, and local levels. We help our clients and millions of Americans achieve success through technology-enabled financing, services, and support. Learn more at Navient.com.

Contact:

Media:
Paul Hartwick, 302-283-4026, paul.hartwick@navient.com

Nathan Rutledge, 703-984-6801, nathan.rutledge@navient.com

FAQ

What did Navient announce on October 20, 2021?

Navient announced the transfer of loan servicing for 5.6 million Department of Education-owned student loan accounts to Maximus.

Who is replacing Navient in loan servicing for the Department of Education?

Maximus is replacing Navient as the contractor for loan servicing.

How many employees are transferring from Navient to Maximus?

Approximately 800 Navient employees will transfer to Maximus.

When will the transition to Maximus’s servicing division be completed?

The transition to Maximus’s servicing division, Aidvantage, will be completed by year-end.

How many student loan accounts are involved in the transfer from Navient to Maximus?

The transfer involves 5.6 million Department of Education-owned student loan accounts.