The new contract is also part of an extension of current federal student loan contracts through 2023.
Navient’s proposal to transfer the loan servicing of 5.6 million U.S. Department of Education-owned student loan accounts to Maximus has received all necessary approvals, according to a news release from the ACA International member company in Wilmington, Delaware.
Effective Oct. 20, Maximus replaced 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, according to the news release.
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.
Navient’s announcement follows one from the Department of Education that six student loan servicers working on federal student loans have agreed to new contract terms that will be in place until December 2023, ACA previously reported.
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