- Navient, the largest student loan company in the United States, has announced plans to end its loan service.
- This announcement is awaiting government approval.
- Navient serves 12 million borrowers and is the third company to announce its intention to terminate its contract.
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Navient, the country’s largest student loan company, said Tuesday it is seeking government approval to end its service contract.
According to a press release, the 12 million borrowers who are currently repaying their student loans at Navient will be transferred to Maximus, a government loan management company. It is the third company to announce its intention to end loan service this year – the Pennsylvania Higher Education Aid Agency (PHEAA) and Granite condition management and resources, serving a total of 10 million borrowers, are also terminating their contracts.
“Navient is pleased to work with the Department of Education and Maximus to ensure a smooth transition for borrowers and Navient employees as we continue to focus on areas other than government student loan servicing,” said Jack Remondi, President and CEO of Navient, said in a statement. . “Maximus will be a great partner in ensuring borrowers and government are well served, and we look forward to receiving FSA approval.”
This story is out and will be updated.