First Data and Navient Announce Agreement on Student Loan Technology
May 23 2018 - 8:30AM
Business Wire
First Data (NYSE: FDC) and Navient (Nasdaq: NAVI) announced they
have reached a strategic agreement for First Data to become the
primary provider of technology solutions for Navient’s federal and
private education loans. This agreement expands on First Data and
Navient’s longstanding partnership to support private student
loans.
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As a part of the agreement, First Data will acquire Navient’s
student loan technology platform. Navient information technology
talent who manage the platform will join First Data.
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.
As one of the largest servicers of student loans, Navient will
continue to provide its leading customer service, data insights,
default prevention, back office support, and other services that
have delivered a track record of customer success.
“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, First Data. “Navient’s platform is
well-proven, and we welcome the Navient employees joining our
company.”
“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, 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.”
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.
About First Data
First Data (NYSE: FDC) is a global leader in commerce-enabling
technology, serving approximately six million business locations
and 4,000 financial institutions in more than 100 countries around
the world. The company’s 22,000 owner-associates are dedicated to
helping companies, from start-ups to the world’s largest
corporations, conduct commerce every day by securing and processing
more than 3,000 transactions per second and $2.4 trillion per
year.
About Navient
Navient (Nasdaq: NAVI) is a leading provider of asset management
and business processing solutions for education, healthcare, and
government clients at the federal, state and local levels. The
company helps its clients and millions of Americans achieve
financial success through services and support. Headquartered in
Wilmington, Delaware, Navient employs team members in western New
York, northeastern Pennsylvania, Indiana, Tennessee, Texas,
Virginia, Wisconsin, California and other locations. Learn more at
navient.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20180523005679/en/
Media:Mia ShernoffFirst
Data212-515-0225mediarelations@firstdata.comPaul
HartwickNavient302-283-4026paul.hartwick@navient.comInvestors:Peter
PoillonFirst Data212-266-3565peter.poillon@firstdata.comJoe
FisherNavient302-283-4075joe.fisher@navient.com
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