On Tuesday, Navient announced plans to outsource servicing of its private student-loan portfolio and commercially held loans in the Federal Family Education Loan program to MOHELA, one of the largest federal student-loan servicers. AdvertisementA Navient spokesperson told Insider this change will impact 2.7 million student-loan borrowers with loans currently owned and serviced by Navient. Outsourcing servicing responsibility to MOHELA could spark concern for some borrowers, given how the company has fared since federal student-loan payments resumed in the fall. In January, the department withheld varying amounts of pay from the remaining federal servicers for the same reason. It's unclear how soon Navient borrowers will begin communications with MOHELA.

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Persons: —, Navient, David Yowan, MOHELA, Elizabeth Warren, John Remondi, Warren Organizations: Service, Family Education, Business, Navient, Outsourcing, Education Department, Democratic, MOHELA Locations: Sen