The two companies said they have submitted a preliminary request for review. The contract novation is subject to the approval of the Federal Student Aid office and the DOE, and is expected to be finalized in the fourth quarter of 2021.
Teresa Weipert, general manager of Maximus’ U.S. Federal Services segment, said the company looks forward to continuing its support of the FSA and expanding its portfolio with federal student loan servicing.
The successful migration of Navient’s student loan accounts will add to Maximus’ current FSA portfolio which includes the Debt Management and Collections System (DMCS) contract as well as the Next Generation Business Process Operations (BPO) contract.
Weipert explained that the newly proposed contract novation “enables Maximus to apply our deep understanding of the needs of student borrowers and our industry-leading customer service to assist FSA in successfully serving millions of student loan borrowers.”
Under the transaction, a number of employees on Navient’s DOE loan servicing team will transfer to Maximus in order to ensure operational continuity for FSA customers.
Navient’s President and CEO, Jack Remondi said the company will work with the DOE and Maximus to provide a smooth transition for borrowers. Upon receipt of FSA approval and customary closing conditions, Navient will exit the DOE student loan servicing program as planned.