Millions of student loan accounts to transfer servicing companies

Millions of borrowers will see their student loan portfolios transferred to another company as one of the nation’s largest servicers announced its plans to leave the industry.

Navient announced this week it entered a binding letter of intent with the Higher Education Loan Authority of the State of Missouri, or MOHELA, to outsource servicing of privately held student loan portfolios and commercial loans in the Federal Family Education Loan program.

Navient was formed during a split of Sallie Mae a decade ago, and it has serviced both private and federal student loans. MOHELA is one of the largest servicers of federal loans in the United States.

“Navient has entered into a binding letter of intent that will transition its student loan servicing to MOHELA, a leading provider of student loan servicing for government and commercial enterprises,” Navient stated in
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