This Lender Will No Longer Service Federal Student Loans: What That Means for Its Business
Navient (NASDAQ: NAVI) recently announced that it would step away from servicing federal student loans, transferring its U.S. Department of Education-owned student loan accounts to Maximus. Navient's transfer of its servicing portfolio comes following the Pennsylvania Higher Education Assistance Agency's and Granite State's decision to end their relationship with the government servicing federal student loans earlier this year.
Last year the government provided student loan relief for students with federal loans in the early stages of the coronavirus pandemic, a measure that has been extended into January 2022. While this had an effect on these loan servicers, the biggest reason companies are exiting the business now is likely due to the federal government's increasing scrutiny.
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Source Fool.com
