Navient has announced that it will no longer service federal student loans. The company is one of the largest servicers for the U.S. Department of Education. Navient has a massive $1.7 trillion oustanding in its student loan portfolio.
The decision leaves around 6 million borrowers waiting to be matched with a new lender. With a transition of this magnititude, problems are likely to occur. Here are a few things borrowers should do now if their student loans are getting reassigned to another lender.
1. As soon as possible, log into your current loan servicer’s website and save or print a copy of your loan information. Get a list of all of your student loans, including your payment history, current loan balances, interest rates and monthly loan payment amount. Having this documentation can make sure your loan information is accurate after it is transferred to a new servicer.
2. Double-check that your servicer has your current contact information, so you receive all notifications about the upcoming change.
3. The payment pause and interest waiver for federal student loan debt is scheduled to end in February 2022. If you are still unemployed or dealing with other financial issues, make sure and request an economic hardship or unemployment deferment.
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For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. There are ways to file for bankruptcy with student loan debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.