Navient to MOHELA: What the Student Loan Transfer Means for You

Navient doesn’t service federal student loans anymore. In 2022, most of its accounts moved to new companies — AidvantageAidvantageA federal student loan servicer operated by Maximus that manages Direct Loan accounts on behalf of the U.S. Department of Education, including many accounts previously serviced by Navient. for federal Direct Loans and MOHELAMOHELAThe Missouri Higher Education Loan Authority, a federal student loan servicer that currently handles accounts for borrowers in Public Service Loan Forgiveness and other federal loan portfolios. for older FFEL and some private loans. If you once paid Navient but now see MOHELA listed, that’s normal. What matters now is what kind of loan you have — because that determines your path to forgiveness, repayment, or settlement.

When Navient Loans Moved to MOHELA

Navient moved its FFEL to MOHELA between late 2021 and mid-2022. It wasn’t a buyout or merger — it was a servicing transfer approved by the Department of Education after Navient exited the federal loan business.

From that point:

• Aidvantage took over Navient’s Direct Loans (federal loans owned by the government).
• MOHELA began servicing older FFEL loans and a small batch of private loans Navient once managed for banks and investors.
• Navient still exists. It now focuses on private loans and defaulted federal accounts that were pulled back for collection.

For borrowers, the change mainly affected who manages your account, not your interest rate, repayment plan, or forgiveness progress. The simplest way to confirm where your loans landed is to log in to StudentAid.gov and download your Loan Breakdown report — it lists every servicer tied to your loans.

Is MOHELA the Same as Navient?

MOHELA and Navient aren’t the same company — and they serve very different roles.

Navient is a private company that now manages private and defaulted loans.

If your loan moved from Navient to MOHELA, that doesn’t mean MOHELA bought or merged with Navient — it simply means MOHELA now handles your payments and records. Your loan terms, balance, and interest rate stayed the same.

What Does the Navient to MOHELA Transfer Mean for You?

The transfer didn’t change your loan — it changed who you deal with. Your balance, interest rate, repayment plan, and forgiveness progress all stayed the same. What’s different is the servicer handling your payments and paperwork.

If you had a federal loan, MOHELA now manages your account and tracks your PSLF and IDR forgivenessIDR ForgivenessThe forgiveness of any remaining federal student loan balance after a borrower has completed 20 or 25 years of qualifying payments under an income-driven repayment plan, depending on the specific plan. credit. You’ll need to set up a new login and re-enroll in auto-pay to keep your interest discount.

If you still see Navient listed anywhere, that usually means your loan is private or in defaultDefaultThe status of a federal student loan after the borrower has failed to make required payments for 270 days. Default can trigger collection actions such as wage garnishment, tax refund offset, and damage to credit reports..

Why You Might Still See Navient on Your Account

If you still see Navient listed as your servicer, it usually means your loan defaulted or was never part of the federal portfolio to begin with. When that happens, the loan often gets pulled back from MOHELA and managed directly by Navient or one of its collection partners, like Allied Interstate or Pioneer Credit Recovery.

This doesn’t mean your loan is active with the Department of Education anymore — it means you’re dealing with a private or charged-off account. Those loans can often be settled for less than the full balance, depending on your finances and how aggressive the collector is.

Related:

• How to Tell If Your Navient Loan is Federal or Private
• How to Settle Navient Loans After Default

How the Transfer Affects Forgiveness and PSLFPublic Service Loan Forgiveness (PSLF)A federal program that forgives the remaining balance on Direct Loans after 120 qualifying monthly payments made while working full-time for a government or qualifying nonprofit employer.

If your loans moved from Navient to MOHELA, you likely have FFEL loans — and those don’t qualify for PSLF. They also didn’t get the one-time account adjustment that boosted forgiveness credit for Direct Loans. Your only federal path with FFEL loans is Income-Based RepaymentIncome-Based Repayment (IBR)A federal income-driven repayment plan that caps monthly payments at 10% or 15% of discretionary income, depending on when the loans were taken out. Remaining debt is forgiven after 20 or 25 years of qualifying payments. (IBR) forgiveness after 20–25 years of payments.

To qualify for PSLF or newer IDR plans like SAVE, you’ll need to consolidate your FFEL loans into the Direct LoanDirect LoanA federal student loan made directly by the U.S. Department of Education under the William D. Ford Federal Direct Loan Program. Most federal student loans issued since 2010 are Direct Loans. program at StudentAid.gov. Once consolidated, MOHELA becomes your servicer for PSLF and forgiveness tracking.

If your loans are private and still with Navient, there’s no federal forgiveness available. But Navient does offer it’s own private student loanPrivate Student LoanA student loan issued by a bank, credit union, or other private lender rather than the federal government. Private loans generally lack federal protections like income-driven repayment and broad forgiveness programs. forgiveness program.

Related:

• How to Get Navient Federal Student Loans Forgiven
• How Navient’s Private Student Loan Forgiveness Program Works