Navient gets approval to exit Education Department's loan servicing program

Navient Corp. has transferred the loan servicing of 5.6 million U.S. Education Department-owned student loan accounts to Maximus Inc. after securing all necessary approvals.

Maximus is the contractor to the Education Department, replacing Navient, effective Oct. 20.

Borrowers will transition to Aidvantage, Maximus' servicing division, by the end of 2021. The loans will remain on the same Fiserv Inc.-owned student loan servicing technology platform. Additionally, roughly 800 Navient employees who had previously worked on the Education Department loan servicing team will move to Maximus.

Beginning in early 2021, Navient was advised on the transaction by Houlihan Lokey.