Today, Navient shared that we are working collaboratively with Maximus and the U.S. Department of Education to transfer our servicing contract to Maximus, creating a smooth transition for borrowers and employees. This proposal, pending Department of Education approval, reflects a major step for Navient as we strengthen our focus on the lending and business processing growth opportunities ahead of us.
Since we declined the Department’s Next Gen servicing contract in 2020, we have explored options to ensure an easy path for borrowers and to provide ongoing work for our dedicated team members. We were pleased to find a terrific partner in Maximus. Both companies have been in collaborative and productive discussions with the Department’s office of Federal Student Aid about this transition for several months.
All of us at Navient are proud to have served the Department of Education and its student loan borrowers for more than a decade, supporting millions of people to invest in higher education.
Our dedicated team piloted and implemented solutions to simplify the customer experience for students and families across many different life stages. Our team has made all the difference in helping so many people manage their federal loans.
- Borrowers we serve are less likely to default due to our data-driven approach — 34% less likely to default on average.
- We have developed innovative solutions to reach borrowers and helped simplify the complex maze of federal repayment options. Today, more than one-third of all federal borrowers we serve — more than half of balances — are enrolled in income-driven repayment plans.
- On average, about half a million Navient-serviced borrowers pay off their loans in full every year — that’s 4.6 million people we supported to become student loan debt free over the last decade.
- We’ve also worked to make the federal student loan program better for everyone by sharing our insights and data with policymakers.
In making this decision, ensuring that borrowers and our employees are positively supported was a top priority.
Through our diligent work over several months, we are confident that borrowers will continue to be well served, and we are committed to working together with Maximus and the Department of Education to ensure a successful transition.
As we exit Department of Education servicing, we’re excited to focus on our other business lines, which represent 94% of our annualized revenues. In consumer lending, our refi products help people lower their student loan interest rates and become debt free faster. We’ve invested in new digital tools to connect with people and simplify the process of applying for scholarships. In business processing solutions, we’re growing as we successfully fulfill critical needs for our clients. We’re excited about our momentum and our future.