accounts to Maximus, another student loan servicer. Navient and Maximus have submitted a preliminary request for review to Federal Student Aid (FSA), but the U.S. Department of Education must approve the transfer from Navient to Maximus. Why did Navient exit student loan servicing for federal student loans?
FedLoan Servicing, also known as the Pennsylvania Higher Education Assistance Agency (PHEAA), will not renew its 12-year-old contract with the U.S. Department of Education to service federal student loans. FedLoan Servicing services student loans for approximately 8.5 million student loan borrowers, which represents about 20% of all federal student loan borrowers. FedLoan Servicing’s current contract will expire December 14, 2021. FedLoan Servicing is also the sole student loan servicer that services federal student loans for the Public Service Loan Forgiveness program, which helps student loan borrowers who work for a qualified public service or non-profit employer get student loan cancellation. The Public Service Loan Forgiveness program has been under increased scrutiny due to its 98% rejection rate.