Maximus Federal Student Loan Servicing Contract Novation Completed
Maximus announced today that the contract novation to transfer the loan servicing for U.S. Department of Education-owned student loan accounts from Navient to Maximus received all necessary approvals from the U.S. Department of Education Office of Federal Student Aid (FSA). Maximus replaces Navient as the contractor for loan servicing of 5.6 million Department of Education-owned student loan accounts.
The accounts will transition to Maximus’s servicing division, Aidvantage, by year end, after a series of communications to borrowers. The loans will remain on the same student loan servicing technology platform, owned by Fiserv, and approximately 800 Navient employees who previously worked on the Department of Education loan servicing team will transfer to Maximus.
“We are pleased to report the completion of the contract novation of the U.S. Department of Education owned student loan accounts. We look forward to supporting FSA as an independent, conflict free provider, committed to providing an enhanced focus on the borrower experience and to help fulfill FSA’s mission,” stated Teresa Weipert, General Manager, Maximus Federal Services.
“We welcome our new colleagues joining us from Navient, many of whom have decades of service and bring a deep understanding of the borrower experience,” commented Weipert. “To help ensure a smooth transition, Navient will subcontract to Maximus for the first 90 days.”