Abandon Ship: Navient Sending Borrowers to MOHELA

Navient Outsourcing Student Loan Servicing to MOHELA

If you’re one of millions of borrowers with student loans owned by Navient, you’ll soon be getting a new servicer: MOHELA. Navient—which used to be one of the very largest loan servicers—continues to disinvest from its student loan business after transferring out all of its federal student loans just a couple of years ago. While the company touts these actions as “strategic actions” to maximize profits and shareholder dividends, it comes after years of criticism, lawsuits, and government rebuke for poor, and even mis-management of borrowers’ loans. Former CEO John Remondi was ousted by the company in 2023, after he was making multi-million dollar bonuses just a few years prior.

What Does the Outsourcing Mean for Navient Clients?

Navients isn’t divesting of its remaining student loan profile, but it is closing what remains of its servicing division. It will continue to own the loans, but MOHELA will service them. That means that all of Navient’s clients will have some work to do, although the company’s press release posits that the swap could take up to 2 years to complete. In the meantime, borrowers can learn more about their new servicer. Unfortunately, they probably can’t expect much better service than they’re already getting.

If you’re a Navient client and are concerned about how the service transfer may affect your repayment, or want to explore what options you may have to move your loans through refinance, etc., give your student loan professional a call. As the waters of student loans, servicers, and more are constantly shifting, let us be your guide to calmer seas. 

If you have Federal Student Loans, schedule your free 15-minute Discovery Session to find out if your loans can be forgiven after 25 years.