Wilmington, Delaware-based Navient Corporation, a major student loan servicer, has announced its plans to leave the industry.
Navient announced this week it entered a binding letter of intent to outsource servicing of privately held student loan portfolios and commercial loans in the Federal Family Education Loan program.
According to a company statement, “Navient has entered into a binding letter of intent that will transition its student loan servicing to MOHELA, a leading provider of student loan servicing for government and commercial enterprises. Navient and MOHELA will work toward ensuring a seamless transition in the coming months and providing customers with uninterrupted servicing of their loans. The outsourcing process will begin this year and last 18 to 24 months, but Navient will maintain ownership of the loans."
According to Navient President and CEO David Yowan, "The decision to outsource is intended to simplify our business, reduce our expense base, and increase our financial and operating flexibility. Over the longer term, we believe these actions will increase the value shareholders derive from our loan portfolios and the returns we can achieve on business-building investments.”
Employees involved with processing, servicing, and providing customer service are at risk as operations are transferred to MOHELA.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something bad hasn't happened yet doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?