You probably remember the mailers. Or the phone calls. For over a decade, Navient was the name that defined the student loan experience for millions of Americans. It was the giant in the room. If you had a balance, they likely had your data. But honestly, if you're looking for Navient for student loans today, you’re looking at a ghost.
The company is basically gone from the federal servicing game.
It wasn't a quiet exit, either. After years of lawsuits, regulatory heat from the Consumer Financial Protection Bureau (CFPB), and a mountain of borrower complaints, the company officially threw in the towel. In late 2024, they finished moving their remaining 2.7 million accounts over to MOHELA. If you still think you're paying Navient, you’ve likely missed a few very important emails.
The Massive Shift to MOHELA and Aidvantage
Navient didn't just wake up and decide to stop. They were pushed. By September 2024, the CFPB permanently banned them from servicing federal Direct Loans. That is a huge deal. It’s like a bank being told they can’t handle mortgages anymore.
The regulator found they were "steering" people. Instead of helping struggling graduates get into income-driven repayment (IDR) plans—which could lead to forgiveness—they were pushing them into forbearances. Forbearances are easy for the servicer, but they are a nightmare for the borrower because interest keeps piling up.
Most federal loans previously held by Navient are now with Aidvantage or MOHELA.
The transition was supposed to be seamless. You know how that goes. Sometimes it is, sometimes it isn't. If your loan was part of the final 2024 migration to MOHELA, your login credentials might have stayed the same, but the platform you’re looking at is different. Navient still "owns" the portfolio in a legal sense for many private loans, but they don't want to talk to you. MOHELA is the one answering the phones now.
Navient for Student Loans: The Private Debt Reality
If you have private loans, things are a little weirder. Navient still exists as a corporate entity that holds private debt.
Many people are still waiting for relief from the $1.85 billion settlement involving 39 state attorneys general. This settlement was specifically for "predatory" private loans issued between 2002 and 2010. These were the subprime loans given to students at schools with low graduation rates.
If you were one of the 66,000 people eligible for a total discharge, you should have heard something by now. If you didn't, it’s probably because your specific loan didn't meet the narrow criteria of the settlement.
Why your private loan might still be active:
- It wasn't "predatory" by the legal definition used in the 2022 settlement.
- You attended a traditional four-year non-profit university.
- The loan was taken out after 2010.
- You weren't in default for a specific period before the settlement was reached.
It's frustrating. You see headlines about billions in forgiveness and then you log in to see a $40,000 balance staring back at you. That’s the gap between the news cycle and reality.
The 2026 "One Big Beautiful Bill" Changes
We are now in 2026, and the rules are shifting again. The OBBBA (One Big Beautiful Bill Act) passed in 2025 has completely rewired how repayment works. This affects everyone who used to be with Navient and is now with a new servicer.
If you are a new borrower starting this year, you only have two options: the Standard 10-year plan or the new Repayment Assistance Plan (RAP).
RAP is the replacement for all those old acronyms like PAYE and ICR. If you’re an old Navient borrower currently on a "Legacy" IBR plan, you can stay there for now. But keep July 1, 2028, circled on your calendar. That is the "sunset" date. By then, almost everyone will have to move to RAP or the Standard plan.
The Tax Bomb is Back
Here is the part nobody likes to talk about. The federal tax exemption for student loan forgiveness expired on December 31, 2025.
If you reach the end of your 20 or 25-year repayment cycle this year and get your balance wiped, the IRS is going to treat that "canceled debt" as income.
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Imagine you have $60,000 forgiven. The IRS sees that as if you earned an extra $60,000 this year. You could end up owing $10,000 or $15,000 in taxes all at once. It’s a brutal reality of the 2026 landscape. Only Public Service Loan Forgiveness (PSLF) remains tax-free at the federal level.
Actionable Steps for Former Navient Borrowers
Stop looking at the Navient website. It’s a landing page for a company that is essentially a holding firm now.
- Verify your servicer: Log into StudentAid.gov immediately. If you haven't checked in a year, your loan has definitely moved. It will either be Aidvantage, MOHELA, Nelnet, or Edfinancial.
- Download your Navient history: If you can still access any old Navient portals, download every single payment record. When loans move between companies, data gets lost. You need proof of every cent you paid.
- Check your IDR status: With the 2026 RAP plan taking over, make sure your income certification is up to date. If you miss a deadline now, the penalties are steeper than they were five years ago.
- Audit your Private Loans: If you have a private loan that you think should have been cancelled in the settlement, contact the Navient AG Settlement Administrator. Don't just assume they forgot you; verify why you weren't included.
- Prep for the "Forgiveness Tax": If you are within two years of hitting your 20-year or 25-year mark, start a "tax side-hustle" or a high-yield savings account. You are going to need cash to pay the IRS when that balance disappears.
The era of Navient for student loans is over. Dealing with their replacement is the new job. It's the same debt, just a different logo at the top of the bill. Stay on top of the 2026 RAP changes, because the "set it and forget it" strategy is exactly how people got in trouble with Navient in the first place.