Navient and Maximus Announce Proposal to Transfer Federal Student Loan Management Contract, Pending Government Approval

0

WILMINGTON, Del. & RESTON, Virginia, September 28, 2021– (COMMERCIAL THREAD) – Navient (Nasdaq: NAVI) and Maximus (NYSE: MMS) announced today that the companies have signed a definitive agreement to transfer loan service for student loan accounts belonging to the U.S. Department of Education from Ship to Maximus through a novation contract, subject to ministry approval. In consultation with the US Department of Education’s Federal Student Aid (FSA) office, Navient and Maximus submitted a preliminary request for review. The novation of the contract will be subject to the agreement of FSA.

Upon receipt of all necessary approvals, including FSA approval and other customary closing conditions, Navient would exit the Department of Education’s student loan management program as scheduled. The program would join FSA’s portfolio at Maximus, which includes the Debt Management and Collection System (DMCS) contract and the next generation business process operations (BPO) contract vehicle (“Next Gen”).

“Navient is excited to work with the Department of Education and Maximus to ensure a smooth transition for borrowers and Navient employees as we continue to focus on areas other than government student loan servicing,” said said Jack Remondi, President and CEO of Navient. “Maximus will be a great partner in ensuring borrowers and government are well served, and we look forward to receiving FSA approval.”

“We look forward to successfully completing this contract innovation and working in partnership with Navient and FSA on the successful migration of operations for this critical function. loan management, ”said Teresa Weipert, general manager of the US Federal Services segment of Maximus. “This contract allows Maximus to apply our in-depth understanding of the needs of student borrowers and our industry-leading customer service to help FSA successfully serve millions of student loan borrowers.”

As part of the proposed transaction, many Navient employees from the Department of Education’s loan management team will be transferred to Maximus. This will ensure the operational continuity of the high quality service provided to FSA customers as well as the use of the same advanced technology used today.

Navient and Maximus are committed to working together and believe this plan provides the government with a reliable approach to supporting borrower success and advancing its vision for next-generation services. The novation of the contract is expected to be finalized during the quarter starting October 1, 2021.

About Navient
Navient (Nasdaq: NAVI) is a leading provider of education loan management and business processing solutions for education, healthcare, and government clients at the federal, state and local levels. We help our customers and millions of Americans succeed with technology financing, services and support. Learn more about Navient.com.

About Maximus
Since 1975, Maximus (NYSE: MMS) has been operating as part of its founding mission of Help the government serve the people®, enabling citizens around the world to successfully engage with their governments at all levels and through a variety of health and social service programs. Maximus offers innovative technology and business process management solutions that contribute to better outcomes for citizens and higher levels of productivity, accuracy, accountability and efficiency of government sponsored programs. With approximately 34,000 employees worldwide, Maximus is a proud partner of government agencies in the United States, Australia, Canada, Italy, Saudi Arabia, Singapore, South Korea, Sweden and the UK. United. For more information visit maximus.com.

See the source version on businesswire.com: https://www.businesswire.com/news/home/20210928006123/en/

Contacts

Investor Reports
Nathan Rutledge 703.984.6801
[email protected]

Jacques Francois 703.251.8526
[email protected]

Madison West 703.251.8443
[email protected]

Media and public relations
Paul Hartwick 302.283.4026
[email protected]

Eileen Rivera 571.329.3410
[email protected]


Source link

Leave A Reply

Your email address will not be published.