How to Get Your Aidvantage Student Loan Forgiven Faster

Aidvantage is a new federal student loan servicing company that was created in 2021 after Navient, one of the largest student loan servicers, split into two separate entities. Aidvantage is now servicing federal student loans for millions of borrowers who were previously serviced by Navient.

The split occurred as the result of ongoing legal troubles and allegations facing Navient related to its student loan servicing practices. To resolve the allegations, Navient agreed to transfer its federal student loan accounts to a new nonprofit entity called Aidvantage. This ensured that the federal loan accounts would continue being serviced properly and compliance issues would be addressed under the new servicer.

For student loan borrowers, the transition to Aidvantage aims to provide an improved level of service and resolution for any account issues they may have faced with Navient. Aidvantage has stated its goals of helping borrowers successfully repay their loans through enrollment in affordable payment plans, as well as increased assistance for those facing financial hardship.

The transfer of servicing from Navient to Aidvantage has occurred in phases, starting in 2021 and expecting to be completed by the end of 2022. Aidvantage is now the servicer listed on all federal student loan accounts previously held by Navient. This means borrowers will need to create online accounts with Aidvantage, communicate with Aidvantage representatives, and make their federal student loan payments to Aidvantage moving forward.

The transition to a new servicer understandably raises many questions for borrowers about impacts to their account, payments, access to benefits, and more. Aidvantage has resources to help borrowers understand the changes and ensure a smooth transition to their new servicer. Overall, the creation of Aidvantage aims to resolve past servicing concerns and create a more positive student loan repayment experience.

Types of Loans Serviced by Aidvantage

Aidvantage student loan made under various programs, including:

Direct Loans

Direct Loans are federal student loans that come directly from the U.S. Department of Education. They include:

  • Direct Subsidized Loans – For undergrads with financial need. Interest is paid by the government while you’re in school at least half-time.

  • Direct Unsubsidized Loans – Available to all eligible undergrads and grads. You’re responsible for interest during all periods.

  • Direct PLUS Loans – For graduate students and parents of dependent undergrads. Credit check required.

  • Direct Consolidation Loans – Combine multiple federal student loans into one new loan.


FFELP loans were made by private lenders but insured by the federal government before 2010. Types include:

  • Subsidized and Unsubsidized Stafford Loans
  • Parent PLUS Loans
  • Consolidation Loans

Perkins Loans

Perkins Loans are low-interest federal student loans issued directly by participating schools. No longer disbursed, but past borrowers may still have these.

HEAL Loans

HEAL (Health Education Assistance Loan) programs provided loans to graduate students in healthcare fields between 1978-1998, before being discontinued.

Applying for Aidvantage Loans

Students can apply for federal student loans by completing the Free Application for Federal Student Aid (FAFSA) at The FAFSA collects financial and other information to determine eligibility for federal student aid, including loans serviced by Aidvantage.

To apply for Aidvantage loans, students must:

  • Complete and submit the FAFSA form every year to be eligible for federal student loans. The FAFSA becomes available on October 1 for the following academic year.
  • Meet general eligibility criteria set by the federal government, including being a U.S. citizen or eligible noncitizen, having a valid Social Security number, and demonstrating financial need.
  • Maintain satisfactory academic progress in an eligible degree or certificate program at a participating school.
  • Not be in default on any federal education loans.
  • Register with the Selective Service if required.

After submitting the FAFSA, students will receive a financial aid offer from their school detailing the types and amounts of aid they qualify for. Common Aidvantage loans included in financial aid offers are Direct Subsidized Loans and Direct Unsubsidized Loans.

The school will confirm students’ eligibility before disbursing loan funds. Students may have to complete additional steps such as entrance counseling and signing the master promissory note.

Annual and aggregate loan limits apply to federal student loans. For dependent undergraduate students, the annual loan limits are:

  • $5,500 for first-year students (up to $3,500 subsidized)
  • $6,500 for second-year students (up to $4,500 subsidized)
  • $7,500 for third-year students and beyond (up to $5,500 subsidized)

Independent undergraduate students have higher annual loan limits. Graduate students also have increased loan limits up to $20,500 per year.

Interest Rates and Fees

Interest rates on Aidvantage loans vary depending on the loan type. Here’s an overview of interest rates for common Aidvantage serviced loans:

  • Direct Subsidized and Unsubsidized Loans – These fixed interest rates are set each year based on the 10-year Treasury note index. Rates are capped at 8.25% for undergraduate loans and 9.5% for graduate loans. For loans first disbursed July 2022-June 2023, undergrad rates are 4.99% and grad rates are 6.54%.

  • Direct PLUS Loans – These also have fixed interest rates set annually based on the 10-year Treasury note index. Rates are capped at 10.5%. The current 2022-2023 rate is 7.54%.

  • FFEL Loans – These older federal loans have fixed or variable interest rates depending on when and what type of loan it is. Fixed rates range from 5.6% to 8.5% for undergrad loans and 6.8% to 9% for graduate loans. Variable rates are adjusted annually based on the 91-day Treasury bill rate + 1.7% to 3.25%.

In addition to interest, Aidvantage loans may also have origination and late fees:

  • Origination Fees – Direct loans may charge an origination fee of up to 1.057% that’s deducted from disbursements. There are no origination fees for FFEL loans.

  • Late Fees – If a payment is over 15 days late, Aidvantage may charge a late fee of up to 6% of the missed payment amount.

Understanding the interest rates and potential fees for your Aidvantage serviced loans can help you estimate costs and make smart borrowing decisions. Key differences to note are that Direct loans have lower fixed rates and origination fees, while FFELs have higher/variable rates but no origination fee.

Repayment Options and Plans

Aidvantage offers several repayment plan options to fit your financial situation and goals. Choosing the right repayment plan can help make your student loans more affordable.

Standard Repayment Plan

The standard repayment plan divides your loan balance evenly among 10 years of payments. This plan results in the highest monthly payments but the lowest total interest paid over the life of the loan.

To be eligible for the standard repayment plan, you must have up to $30,000 in Federal Family Education Loan (FFEL) Program loans or up to $30,000 in Direct Loans. This plan is good for borrowers who can manage higher monthly payments.

Graduated Repayment Plan

With the graduated repayment plan, payments start low and increase every two years. The repayment period is still 10 years. This plan is beneficial if you expect your income to steadily rise over the next decade.

To qualify for graduated repayment, you must have up to $30,000 in outstanding FFEL Program loans or up to $30,000 in Direct Loans. Your monthly payment must be at least 50% of the standard plan amount.

Income-Driven Repayment Plans

Income-driven repayment plans base your monthly payments on your income and family size. These plans help manage student loan debt by reducing payments if your income is low. The repayment period may extend beyond 10 years.

The four income-driven plans offered by Aidvantage are:

  • Revised Pay As You Earn (REPAYE)
  • Pay As You Earn (PAYE)
  • Income-Based Repayment (IBR)
  • Income-Contingent Repayment (ICR)

To qualify for income-driven repayment, you must have Direct Loans or FFEL loans owned by the U.S. Department of Education. Your payment is recalculated each year based on updated income and family size.

Extended Repayment Plan

The extended repayment plan allows loans to be repaid over 25 years. You must have over $30,000 in Direct or FFEL loans to qualify. Extended repayment lowers monthly payments by spreading them over more time, but results in more interest paid over the life of the loan.

Loan Forgiveness Programs

Aidvantage offers loan forgiveness programs as a reward for working in public service or meeting other criteria. Common forgiveness programs include Public Service Loan Forgiveness (PSLF), Teacher Loan Forgiveness, and Perkins Loan Cancellation.

With diligent tracking of payments and employment, you may qualify to have a portion or all remaining loan balances forgiven after making payments for a set period. Contact Aidvantage to learn more about specific forgiveness program requirements.

Deferment and Forbearance

If you are having trouble making your student loan payments, you may be eligible for deferment or forbearance to temporarily postpone your payments.


Deferment allows you to temporarily pause your loan payments for a certain period of time. The most common qualifying reasons for deferment include:

  • Enrollment in college at least half-time
  • Unemployment
  • Economic hardship
  • Active military service

You can receive a deferment for up to 3 years at a time. Interest typically does not accrue on subsidized loans during deferment, but does accrue on unsubsidized loans.


Forbearance offers another option to temporarily postpone your payments for up to 12 months at a time. You can qualify for forbearance for reasons such as:

  • Financial difficulties
  • Change in employment
  • Poor health
  • Other unforeseen circumstances

The key difference with forbearance is that interest continues to accrue on both subsidized and unsubsidized loans. This means the total amount you owe will increase during the forbearance period.

Deferment and forbearance provide short-term relief when you are unable to make your scheduled loan payments. Be sure to explore all options and contact your loan servicer if you need assistance.

Servicer Transfer to Aidvantage

In 2021, student loan servicer Navient announced plans to transfer the servicing of all federally held student loans to Aidvantage. This transfer is expected to impact over 6 million federal student loan borrowers.

The transition to Aidvantage as the new servicer is expected to occur in multiple phases over the next year. The first phase already began in late 2021 and additional phases will continue throughout 2022.


Borrowers will receive notices from Navient confirming the transfer of their loans to Aidvantage. The notice will provide details on exact transfer dates and timeline as well as new Aidvantage account information.

Most borrowers can expect their loans to be fully transferred between 9-12 months from receiving the first notice. Until the transfer is complete, Navient will continue servicing the loans.

Payment Impacts

During the transition period, borrowers should continue making payments to Navient until informed otherwise. Autopay enrollment and recurring payments with Navient will not carry over to the new Aidvantage account automatically.

Once the transfer takes place, borrowers will need to set up a new student aid account on the Aidvantage website or app and re-enroll in autopay if desired. Any changes to monthly payment dates or amounts will be communicated ahead of time.

Account Management

Until the transfer is complete, borrowers will still manage their account and loan details through Navient. After the transfer date passes, account access will shift to the Aidvantage platform instead.

Some account management functions may be temporarily unavailable during the transition process. Borrowers should save any statements or account documents from Navient prior to the transfer.

Aidvantage has resources to help borrowers through the transfer process online or via phone and ensure no disruption to servicing occurs. Their customer service team can help with any account questions before, during, or after the transition.

Making Payments

One of the most important aspects of managing your student loans is making regular on-time payments. Aidvantage offers several convenient payment options to choose from:

Payment Methods

  • Online – The easiest way to pay is through your online Aidvantage account. You can make one-time payments or set up recurring automatic payments from your bank account.

  • Phone – Call Aidvantage at 1-800-722-1300 to make a payment over the phone using your checking or savings account.

  • Mail – Send a check or money order to the payment mailing address provided on your monthly statement. Be sure to include your account number on the check.

  • Mobile App – Download the Aidvantage app for iOS or Android to pay on your smartphone.

Accessing Your Account

Your Aidvantage online account gives you 24/7 access to manage payments, view statements, update personal information, and more. Creating an account is free – just provide some basic personal details.

The mobile app also allows you to access your account, make payments, and view loan details on the go.


Enrolling in auto-debit through Aidvantage is strongly recommended to ensure your payments are made on time each month. This convenient option automatically withdraws your payment from your bank account on the due date. You can cancel or change your auto-debit option at any time through your online account.

Keeping up with monthly student loan payments is essential for avoiding late fees, damages to your credit, or loan default. Aidvantage aims to make paying your loans as simple and streamlined as possible.

Leave a Comment