Millions of student loans being serviced by new company called Aidvantage: What you should know

PHILADELPHIA — Millions in student loans are now being serviced by a new company. If you are affected by this, you should have received notification of the change by now.

It actually went into effect late last year, but has slipped under the radar as student loan payments are on pandemic hiatus. However, with the payments continuing, the Troubleshooters now have questions about it.

“I have received information that states this Auxiliary advantage was now taking over Navient, which Navient was taken over by Sallie Mae,” said Pamela Walters of Bear, Delaware. “So now I’m really confused.”

So do many other student loan borrowers. So here’s what you need to know.

“Navient, in recent years, has faced some regulatory issues,” said financial analyst and consultant Chuck Minnich of Foundation Capital ManagementLLC.

SEE ALSO: From debt cancellation to restarting payments, here’s what you need to know about student loan changes

Navient, one of the nation’s largest student loan servicers this year, agreed to write off $1.7 billion in debt to resolve claims unfair, deceptive practices and predatory loans.

“So Navient decided to get out of the business and move its federal loans to Aidvantage,” he said.

The transfer started last fall and the website changed for borrowers in late 2021.

But many people have not realized this and are now experiencing false hopes.

“A lot of people log into their Navient website and see a zero balance,” Minnich said. “It turned out to be a cruel joke because the balance of the loan was just transferred to Aidvantage.”

Here’s what borrowers need to do now before loan payments start in September: Go to Aidvantage website and log in using your Navient credentials.

“With the transfer of 5.6 million loans, there were some issues, so you want to make sure everything is accurate before the payments start whenever they are made,” Minnich said.

To highlight, Navient transferred federal loans on behalf of the US Department of Education. Navient still owns and services other loans and many borrowers, so it is possible that some will have to pay both Navient and Aidvantage.

The best thing to do is log in to both sites now. And if your financial situation has changed since the last assessment loan repayment optionsconsider applying now through Aidvantage.

Navient Statement:

While loans serviced on behalf of the U.S. Department of Education were transferred to another servicer last year, Navient owns and services other student loans. While we cannot share information about a customer without their express permission, our customer advocates will contact the viewer to help with questions and help explore payment options.

Help Statement:

Many student borrowers have two types of loans: those owned by the US Department of Education (DOE) and loans owned by private commercial entities. Aidvantage exclusively services DOE loans. Aidvantage does not and has never serviced loans owned by private commercial entities. Last year, Aidvantage took over loan servicing for DOE loans previously serviced by Navient. To ease the transition for borrowers, we worked to keep these DOE loans in the same servicing system, with all borrower information moving seamlessly. We also structured the transfer in a way that allowed borrowers with an existing online account to keep their login information, simplifying their transition to Aidvantage. Borrowers can confirm their loan servicer(s) through the National Student Loan Data System at StudentAid.gov, which is a database maintained by the DOE for all federal student loan debt.

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Millions of student loans being serviced by new company called Aidvantage: What you should know Source link Millions of student loans being serviced by new company called Aidvantage: What you should know

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