Last week, JPMorgan Chase & Co. announced to shareholders that it planned to unload its student loan holdings. Now, it appears the company has found a home for the $6.9 billion portfolio of student debt.
Navient announced in a press release that it has reached an agreement to purchase JPMorgan’s portfolio. The deal is expected to close in stages during the second quarter of 2017.
What student loans are included in the deal?
According to the statement from Navient, about $3.7 billion of the portfolio is comprised of federally guaranteed student loans. The remaining $3.2 billion in student loan debt is comprised of private loans. JPMorgan stopped originating student loans in 2013.
“We welcome our new customers, and we commit to delivering best-in-class support to ensure a seamless transition,” said Navient CEO Jack Remondi in the press release. “Leveraging our 43-year track record of helping borrowers succeed, we will provide ongoing assistance to help our new customers continue to successfully manage their education loans.”
If JPMorgan previously serviced your student loans, it’s possible your debt will be transferred to Navient in the coming months. If that’s the case, don’t panic — your loan term and interest rate will remain the same.
What to do if your student loan servicer changes
When your debt moves to a new servicer, you technically don’t have to do anything; your old and new servicer will work together and make sure things are transferred smoothly. However, you should pay attention and make sure your payment information and loan data isn’t lost in the shuffle.
1. Confirm your servicer
First, confirm who your student loan servicer is. If you have JPMorgan loans, watch for information about the switch in the coming months.
2. Read your student loan notifications
Your loan servicer should send you a letter ahead of time to let you know about the change. Open and read all notifications so you understand what’s happening and when the transition will occur.
If you have moved recently, double-check your current account and update your contact information if necessary.
3. Create a new account
If your loan servicer is JPMorgan, you should receive a letter from Navient welcoming you. Instructions for creating a new Navient account should be included.
Set up the account as soon as possible and check to make sure everything looks correct. Your loan terms will not change, so your interest rate and repayment period should be the same.
4. Verify your payment information
See when your next bill is due and ensure that your payment information has been correctly moved to your new servicer. If you were previously enrolled in autopay, make sure that information was correctly transferred, too. You don’t want to miss a payment because of your servicer’s mistake.
What if you don’t want Navient as a loan servicer?
New Navient customers may be disappointed to hear that the company is currently facing a lawsuit from the CFPB and a class-action lawsuit. Though you can’t prevent your student loans from moving to Navient, you don’t have to keep them there.
If you’re unwilling to work with Navient, you can attempt to refinance your student loans with a different lender.
When you refinance, you can potentially secure a lower interest rate and smaller monthly payment. This helps you manage your cash flow and save money over time. However, keep in mind that refinancing doesn’t always save you money.
Switching student loan servicers shouldn’t be the only reason you refinance, but choosing a lender you’re more comfortable with is a nice perk. Learn more about what to consider before refinancing.
Could Navient end up with more student loans?
With federal student loan defaults on the rise, it’s possible that Navient could end up with more student loans in its portfolio. Companies like JPMorgan have been looking for ways to unload their student loan debt in recent years to limit losses and liabilities. If Navient continues to buy loans, it could end up with an even bigger share of the market than it already has.
Though it’s not uncommon for student loans to move to a new servicer, it can be inconvenient for borrowers. To ensure you’re always informed of modifications to your debt, keep your contact info updated and log in to your account regularly. With due diligence, you can stay on top of your loans and keep up with any changes.
Interested in refinancing student loans?Here are the top 6 lenders of 2018!
|Lender||Variable APR||Eligible Degrees|
|Check out the testimonials and our in-depth reviews!
1 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 3.89% APR (with Auto Pay) to 7.89% APR (with Auto Pay). Variable rate loan rates range from 2.47% APR (with Auto Pay) to 6.97% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of Month/Day/Year, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 08/21/18. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at firstname.lastname@example.org, or call 888-601-2801 for more information on ourstudent loan refinance product.
© 2018 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.
2 Important Disclosures for Laurel Road.
Laurel Road Disclosures
APR stands for “Annual Percentage Rate.” Rates listed include a 0.25% EFT discount, for automatic payments made from a checking or savings account. Interest rates as of 11/8/2018. Rates subject to change.
Variable rate options consist of a range from 3.27% per year to 6.09% per year for a 5-year term, 4.64% per year to 6.14% per year for a 7-year term, 4.69% per year to 6.19% per year for a 10-year term, 4.94% per year to 6.44% per year for a 15-year term, or 5.19% per year to 6.69% per year for a 20-year term, with no origination fees. APR is subject to increase after consummation. The variable interest rate will change on the first day of every month (“Change Date”) if the Current Index changes. The variable interest rates are based on a Current Index, which is the 1-month London Interbank Offered Rate (LIBOR) (currency in US dollars), as published on The Wall Street Journal’s website. The variable interest rates and Annual Percentage Rate (APR) will increase or decrease when the 1-month LIBOR index changes. The variable interest rates are calculated by adding a margin ranging from 0.98% to 3.80% for the 5-year term loan, 2.35% to 3.85% for the 7-year term loan, 2.40% to 3.90% for the 10-year term loan, 2.65% to 4.15% for the 15-year term loan, and 2.90% to 4.40% for the 20-year term loan, respectively, to the 1-month LIBOR index published on the 25th day of each month immediately preceding each “Change Date,” as defined above, rounded to two decimal places, with no origination fees. If the 25th day of the month is not a business day or is a US federal holiday, the reference date will be the most recent date preceding the 25th day of the month that is a business day. The monthly payment for a sample $10,000 loan at a range of 3.27% per year to 6.09% per year for a 5-year term would be from $180.89 to $193.75. The monthly payment for a sample $10,000 loan at a range of 4.64% per year to 6.14% per year for a 7-year term would be from $139.65 to $146.76. The monthly payment for a sample $10,000 loan at a range of 4.69% per year to 6.19% per year for a 10-year term would be from $104.56 to $111.98. The monthly payment for a sample $10,000 loan at a range of 4.94% per year to 6.44% per year for a 15-year term would be from $78.77 to $86.78. The monthly payment for a sample $10,000 loan at a range of 5.19% per year to 6.69% per year for a 20-year term would be from $67.05 to $75.68.
However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the variable rate will decrease by 0.25%, and will increase back up to the regular variable interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.
3 Important Disclosures for SoFi.
4 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
5 Important Disclosures for CommonBond.
Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown.
All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 2.28% effective October 10, 2018.
6 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
|2.47% – 6.99%3||Undergrad & Graduate|
|2.46% – 6.97%1||Undergrad & Graduate|
|2.57% – 8.44%4||Undergrad & Graduate|
|3.05% – 6.47%2||Undergrad & Graduate|
|2.50% – 7.24%5||Undergrad & Graduate|
|2.79% – 8.39%6||Undergrad & Graduate|