Student loan payments will resume in January, but you may get a new loan service
What is happening
If Navient is your federal loan agent, your loans have been transferred to Aidvantage.
why does it matter
With the federal loan moratorium ending at the end of the year, you’ll want to know how to log into the Aidvantage website to view your student loan account.
Federal student loan payments have been on hold for more than two years, President Biden recently announcedUntil the end of 2022. Whether you qualify Or not, if you haven’t logged into your student loan account since the payment freeze began, now is the time to check in.
If you have Navient federal student loans that are owned by the U.S. Department of Education, your loans have moved to a new loan service, Aidvantage. There is one exception: If you are in the Public Service Loan Forgiveness Program,Or soon it will.
Here’s everything you need to know about what happened to Navient, and how to sign in to the new Aidvantagethe account.
Why did Navient exit the student loan industry?
Navient has long been criticized by the Consumer Financial Protection Bureau, which sued the loan service provider in 2017: It claimed the company had pushed borrowers into expensive, high-risk private loans that they would not be able to repay. In January, Navient canceled $1.7 billion in private student loans to nearly 66,000 borrowers after it came under scrutiny for engaging in abusive and deceptive practices, including targeting students the company allegedly knew it couldn’t.
In 2020, the US Department of Education announced changes to the loan service in an effort to modernize the federal student loan system. As part of the Next Generation initiative, the Department of Education has expanded its partnership with five of 10 existing loan providers, which will continue to serve federal student loans but under stricter government regulations. Navient, along with FedLoan and Granite State, has chosen to end its participation in the Federal Student Loan Service at the end of 2021.
“Increased federal regulations and government scrutiny on the federal loan service are definitely to blame for Navient’s departure,” said Michael Lux, student loan expert, attorney and founder of student loan Sherpa.
Has it become a Navient Aidvantage?
No, at the end of 2021, Navient transferred its 5.6 million student loan caseload to Maximus, another federal student loan contractor. Maximus operates its own student loan service under the name Aidvantage.
How do I sign in to my Aidvantage account?
If you try to log into your previous Navient account, you will find a balance of $0, which simply means that your loans have been transferred to Aidvantage. To sign in to your new account, visit aidvantage.com and enter your Navient login information.
The process is almost identical to that of Navient. Once you have entered your login 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’ll be taken to the home page of your Aidvantage account, which looks just like Navient’s landing page, all the way to the left navigation options and color scheme.
If you can’t remember your login information, select “Forgot User ID” or “Forgot Password” and confirm your personal identification question to have a new email sent to you. If you still cannot or can no longer access your registered email, contact Aidvantage for assistance at 800-722-1300.
Once you’re in, double-check your payment preferences
Any payment terms you set up with Navient — automatic payments, deferments, and income-based payment plans — should be transferred seamlessly to Aidvantage. Since your federal student loan payments have been on hold for more than two years, you may need to review your payment details, especially as the end of forbearance approaches.
If your employment situation has changed since you last reviewed your loan repayment options, you may want to apply for income-driven repayment or other repayment options through Aidvantage now, so you’re ready to go when repayment begins in September.
Prepare to pay in January
Federal student loan payments remain on hold until December 31. if I wereDuring the bearing period, make sure you know your monthly payment now, so you can include that in your budget. You can also explore payment options if you need additional assistance.
If you wish to explore further deferment or deferment options, you may do so through your online account under Payment Options. You can also speak to Aidvantage directly at 800-722-1300.
Do I have to pay off my student loans while payments are on hold?
If you are able to, paying during the pause period can lower the principal loan amount, helping you save money on interest when payments resume.
The only borrowers who may not want to think about paying now are those who are working towards public service loan forgiveness. During the payment pause period, each month counts toward 120 eligible payments – whether you pay or not. So there is little point in making payments during the freeze period.