If Private Collectors Won’t Be Handling Defaulted ED Loans in the Future, Who Will?

Last week in a joint announcement, First Data (NYSE: FDC) and Navient (Nasdaq: NAVI) announced they had reached a strategic agreement for First Data to become the primary provider of technology solutions for Navient’s federal and private education loans. As a part of the agreement, First Data will acquire Navient’s student loan technology platform. The deal is expected to close in the third quarter of this year.

According to the announcement,

"First Data is one of the world’s largest providers of credit processing services, with more than a billion accounts on file. This agreement will also position First Data as a major provider in the student loan technology market and allow First Data to further leverage its scale, technology, and deep experience on behalf of student borrowers. To reinforce First Data’s commitment to this space, First Data is establishing First Data Education, which will be led by Jeff Whorley. Jeff has been Group President, Asset Management and Servicing at Navient and will become a member of First Data’s Management Committee.

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