Millions of student loans are being serviced by a new company called Aidvantage: what you need to know

PHILADELPHIA — Millions of student loans are now being serviced by a new company. If you are affected by this, you should now have received notification of the change.

It actually went into effect late last year, but has gone unnoticed as student loan payments are on pandemic pause. But with payments resuming, convenience stores are now getting questions about it.

“I have received information indicating that Aidvantage is now taking control of Navient, which Navient has been taken over by Sallie Mae,” said Pamela Walters of Bear, Delaware. “So now I’m really confused.”

The same is true for many other student borrowers. So here’s what you need to know.

“Navient, over the past few years, has had regulatory issues,” said financial analyst and advisor Chuck Minnich of Foundation Capital Management, LLC.

SEE ALSO: From canceling debt to resuming repayments, here’s what you need to know about student loan changes

Navient, one of the nation’s largest student loan managers this year, agreed to forgive $1.7 billion in debt to resolve allegations of unfair and deceptive practices and predatory lending.

“So Navient decided to pull out of the business and transfer its federal loans to Aidvantage,” he said.

The transfer began last fall and the website changed for borrowers at the end of 2021.

But many people were unaware and now have false hopes.

“A lot of people log into their Navient site and see a zero balance,” Minnich said. “It turned out to be a cruel joke because the balance of the loan has just been transferred to Aidvantage.”

Here’s what borrowers need to do now before loan payments resume in September: Go to the Aidvantage website and log in using your Navient credentials.

“With 5.6 million loans transferred, there were a few issues, so you want to make sure everything is correct before payments start every time they do,” Minnich said.

To emphasize, Navient transferred federal loans on behalf of the US Department of Education. Navient still owns and manages other loans and many borrowers, so some may have to pay both Navient and Aidvantage.

The best thing to do is to log in to both websites now. And if your financial situation has changed since you last looked at loan repayment options, consider applying now through Aidvantage.

Navient Statement:

While loans managed on behalf of the US Department of Education were transferred to another service provider last year, Navient owns and services other student loans. While we cannot share any customer information without their express permission, our customer advocates will contact the viewer to answer their questions and help them explore payment options.

Aidvantage Statement:

Many student borrowers have two types of loans: those that belong to the US Department of Education (DOE) and loans that belong to private commercial entities. Aidvantage deals exclusively with DOE loans. Aidvantage does not and has never provided service for loans held by private commercial entities. Last year, Aidvantage took over loan servicing for DOE loans previously managed by Navient. To make the transition easier for borrowers, we made an effort to keep these DOE loans on the same management system, with all borrower information transferred seamlessly. We’ve also structured the transfer to allow borrowers with an existing online account to retain their login details, simplifying their migration to Aidvantage. Borrowers can confirm their loan servicer(s) through’s National Student Loan Data System, which is a DOE-maintained database of all federal student loan debt.

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