Navient announced Tuesday that it is seeking an exit from the student loan servicing business and is in talks with the Department of Education for a smooth transition out. 

Covering the accounts of 5.6 million borrowers who collectively owe approximately $283 billion in student debt, Navient is expected to transfer its operations to Maximus, another company with contracts with the Education Department. 

Over the years, Navient has been hit with lawsuits from federal regulators and state attorney generals for incorrectly processing payments. The company denies any wrongdoing. 

If the transition out of the student loan business is completed, how does that affect borrowers who are currently being serviced by Navient? 

One of the first concerns for borrowers is to make sure that information is accurate when loans are transferred. 

Higher education expert Mark Kantrowitz told CNBC that he would advise students to take down their current information so that they can compare it to what is on record with a new provider. 

“Get a list of all your loans, including your payment history, current loan balances, interest rates and monthly loan payment amount,” Kantrowitz said.

Kantrowitz also warns that difficulties can take place at any point in a transition. For that reason, a borrower should make sure their contact information is correct so they do not miss any notifications from either Navient or their new provider. 

Unless something were to go wrong in the transition, it is not expected that a current student loan repayment plan or option will be dramatically changed. 

For students with loans from the federal government, the payment moratorium passed by former President Donald Trump and continued by President Joe Biden will remain in effect until Feb. 1, 2022. 

While this pause remains in effect, borrowers are in their best position to plan how they will be repaying their loans when the moratorium ends. This could mean seeking a forbearance or a deferment for payments if you remain unemployed, which will likely pass on to Navient’s replacement by the time the business transfer is completed.