(Excerpts from The Washington Post)

• Navient, one of the nation’s largest student loan companies, said Tuesday it has struck an agreement to transfer the 5.6 million accounts it manages on behalf of the Education Department to Maximus, another loan servicer.
• The deal, which is pending approval from the department, means the exit of one of the most widely recognized servicing companies from the federal student loan apparatus. It arrives as the federal agency overhauls the management of its $1.6 trillion student loan portfolio.
• Lawmakers and consumer groups say the federal repayment and collection system is poorly run, placing most of the blame at the feet of servicing companies such as Navient. The company, like other student loan servicers, has been accused of mishandling accounts and faced related lawsuits from state and federal authorities.
• Navient has been adamant in defending its business practices and has been a vocal critic of a federal repayment system that has grown more complex and expensive to manage.
• Richard Cordray, who heads the department’s Federal Student Aid office, said the agency is reviewing the proposed transfer to ensure it meets all legal requirements and protects borrowers and taxpayers.