Imagine you have a piggy bank where you keep your allowance. Now, imagine someone else is in charge of helping you count your money and make sure you’re saving enough. That’s kind of like what a student loan servicer does for your college loans. Recently, there’s been a big change in who’s helping take care of some people’s student loan piggy banks. Let’s explore what happened and what it means for you!
What is a Student Loan Servicer?
Before we dive into the changes, let’s understand what a student loan servicer does:
- They keep track of your loan balance
- They help you make payments
- They answer questions about your loan
- They can help you if you’re having trouble making payments
Think of them as a friendly helper for your student loans!
The Big Change: From Navient to Aidvantage
Who is Navient?
Navient was one of the biggest companies helping the government take care of student loans. They were like the head librarian of student loan books, keeping track of millions of loans for students all over the country.
Enter Aidvantage
Aidvantage is a new helper created by another company called Maximus. They’re like the new librarian who’s taking over some of Navient’s books.
What Happened?
In 2021, Navient decided they didn’t want to be the government’s helper for student loans anymore. So, they asked if they could give their job to someone else. The government said yes, and that’s how Aidvantage came into the picture.
Why Did Navient Want to Stop?
Navient had some grown-up reasons for wanting to stop being a federal loan servicer:
- Too many rules: Imagine if you had to follow 100 different rules just to play with your toys. That’s kind of how Navient felt about managing student loans.
- Trouble with the law: Navient got into some arguments with people who make rules. It’s like getting sent to the principal’s office, but for big companies.
- Wanted to do other things: Navient decided they wanted to focus on other parts of their business, like private student loans and other money stuff.
What Does This Mean for Borrowers?
If you had a student loan that Navient was taking care of, here’s what you need to know:
- Your loan didn’t change: It’s still the same loan, just with a new helper.
- New website and phone number: You’ll need to go to a new website and call a different number if you need help.
- Same rules apply: All the special programs and options for your federal student loan still work the same way.
What to Do If Your Loans Were Transferred
Step 1: Find Out Who Your Servicer Is
It’s like checking to see who’s in charge of your classroom. You can do this by:
- Logging into your StudentAid.gov account
- Calling 1-800-4-FED-AID
Step 2: Create a New Account
If Aidvantage is your new helper, you’ll need to make a new account on their website. It’s like getting a new library card for a different library.
Step 3: Update Your Payment Information
If you were automatically paying Navient each month, you’ll need to set that up again with Aidvantage. It’s like telling the ice cream truck to come to your new address.
Step 4: Check Your Loan Details
Make sure all your loan information looks correct. It’s like making sure all your toys made it to your new room after moving houses.
How Aidvantage Can Help You
Aidvantage, as your new loan helper, can assist you with lots of things:
- Making payments: They’ll show you how to pay and where to send your money.
- Answering questions: If you’re confused about something, they’re there to help explain.
- Changing payment plans: If you need to pay less each month, they can help you figure out how.
- Pausing payments: If you’re having a tough time, they can help you take a break from payments.
- Loan forgiveness: They can tell you about programs that might help erase some of your loan.
Important Things to Remember
- Aidvantage is not Navient: They’re a different company, even though they’re doing Navient’s old job.
- Your loan terms didn’t change: The amount you owe and your interest rate stayed the same.
- Be careful of scams: Some bad people might try to trick you during this change. Always double-check before giving out information.
Frequently Asked Questions
Q:1 Do I owe money to Aidvantage now instead of the government?
A: No, the government still owns your loan. Aidvantage is just the new helper.
Q:2 Will this affect my credit score?
A: It shouldn’t. This change is like moving your piggy bank to a new shelf – the money inside is still the same.
Q:3 What if I’m in the middle of applying for a special payment plan?
A: Don’t worry! Aidvantage will continue where Navient left off. It’s like a new teacher taking over your class in the middle of a project.
Q:4 Can I still use the same payment methods I used with Navient?
A: You might need to set up your payment methods again with Aidvantage. It’s like re-teaching a vending machine which coins you like to use.
Q:5 What if I miss a payment during this change?
A: Try not to worry. If you explain what happened, Aidvantage should be understanding. It’s like if you forgot your homework because you moved to a new house.
Conclusion
The change from Navient to Aidvantage is a big move in the world of student loans. But for you, it should be as simple as getting a new helper for your loan piggy bank. Remember:
- Check who your servicer is
- Make a new account if it’s Aidvantage
- Keep making your payments
- Ask for help if you’re confused
Your education is important, and understanding your student loans is part of that journey. Don’t be afraid to ask questions and seek help when you need it. With the right information and support, you can navigate these changes and stay on track with your loans.
Remember, whether it’s Navient, Aidvantage, or any other servicer, they’re there to help you manage your loans successfully. Stay informed, stay positive, and keep working towards your financial goals!