Statement from Federal Student Aid Chief Operating Officer Rich Cordray Regarding Loan Servicers

1 year ago

"Federal Student Aid has been monitoring the contract negotiations between Navient and Maximus for some time and now is considering a formal proposal for Maximus to assume Navient’s contract with FSA to service Department-held student loans. This substitution, called a "novation," by law requires FSA approval.

FSA is reviewing documents and other information from Navient and Maximus to ensure that the proposal meets all legal requirements and properly protects borrowers and taxpayers.

We remain committed to making sure that our federal student loan servicing agreements provide more accountability, meaningful performance measures, and better service for borrowers. FSA looks forward to working with servicers committed to fulfilling these requirements as they do the important work to service more than 40 million federal student loans.”

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