Navient Loans sold to MOHELA

[stacyppl]

About 24 years ago, my then husband and I consolidated our undergraduate student loans. Navient was the servicer. Since we were still in school taking graduate courses, our loans were in foreberance. Apparently, the Department of Education eventually sold our loans to Navient (I figured this out later). Well, we eventually divorced in 2004. By this time, this consolidated loan had ballooned to over $300,000 and was in default. I was also in default with my grad school student loans with The Department of Education to the tune of $70,000. Although I ended up filling for chapter 7 bankruptcy in 2010, I did not include any student loans because I thought I could not discharge any student loans. Those defaulted student loans were a dark cloud over my life. Well, along came Covid and I was able to rehabilitate my loans with the Dept. of Education. I am currently enrolled in the SAVE plan. The Navient loans disappeared off my credit reports. I don't know if they aged off, but I hadn't received any correspondence from them in years (my ex is primary on the loan and I don't know where he is or if he received correspondence from them). I had read that consolidating spousal student loans was no longer allowed, so I thought maybe that had something to do with Navient's silence. We'll, this month, I received two letters from Navient stating that my loans will now be serviced by MOHELA. I have no idea if the loans will reappear on my credit Reports. I know I can't even afford half of the monthly payments. I have no idea where my ex is or if he can pay half. I am not sure what to do. I think I read that the loans Navient purchased from the Department of Ed. are considered private loans now. Can I file Chapter 7 bankruptcy to get rid of these loans? I just feel like I will never get rid of this. Any thoughts/insights? 

[shifter]

On 8/17/2024 at 8:01 PM, stacyppl said:

I think I read that the loans Navient purchased from the Department of Ed. are considered private loans now.

Sounds like it based on this article, but you should confirm with an attorney before moving forward with any BK plans.

 

Quote

The move will affect 2.7 million borrowers with active private student loans and Federal Family Education Loan Program, or FFELP loans. FFELP loans were issued by private lenders but backed by the federal government. That program ended in 2010, but there are still a number of borrowers with those loans.

 

Navient has already exited the federal student loan servicing business. In October 2021, the company transferred all of its Department of Education loan accounts to Maximus, another loan servicing company.

 

https://www.forbes.com/advisor/student-loans/navient-transfers-servicing-of-student-loan-portfolio/

[olywa]

Let me jump into a year old thread, just to stir the brains of some of the geniuses on this board.

 

But let's say I had a FFELP student loan with Navient that was 'transferred for servicing' to Mohela, about a year ago. Although currently still owned by Navient. Navient ownership of this account is listed NOWHERE in my CR's, it's all just Mohela.

 

Could this trigger, at least in WA State & our 'recent rule changes' that Mohela is now acting as a 'debt collector' under WA state law...or would they be covered by the exemptions?

 

Just tossing out ideas, thankful for anyone who reads & offers a thoughtful reply.

 

Happy Holidays to all those that celebrate!

 

olywa

Edited December 23, 2025 by olywa