First Data, a global technology provider, and Navient, the Delaware-based loan provider, on Wednesday announced a strategic agreement for First Data to become the primary provider of technology solutions for Navient’s federal education loans.
First Data formerly supported Navient’s private student loans. Now it will cover both private and federal education loans.
“This agreement with First Data enhances our ability to bring agility, scalability and innovation across our digital technologies enabling us to continue to deliver better outcomes for the student borrowers we serve,” said Patricia Lawicki, executive vice president and chief information officer at Navient. “First Data understands our business, and this agreement also gives us the ability to create a more effective long-term cost structure for our business.”
“We are delighted that Navient has chosen First Data as its partner. Student loan technology is a natural adjacency for First Data, and this agreement significantly expands our capabilities in this sector,” said Andrew Gelb, executive vice president, head of Global Financial Solutions at First Data. “Navient’s platform is well-proven, and we welcome the Navient employees joining our company.”
Navient will continue to service loans for its 12 million federal and private education loan customers, including those serviced under a contract with the U.S. Department of Education.
The agreement is expected to close in the third quarter, subject to certain closing conditions.