Feb. 26--HANOVER TWP. -- The 1,100 employees at the Hanover Industrial Estates processing center who currently answer their phones "Thank you for calling Sallie Mae" will be greeting callers using a new company name by the end of the year.
The student loan giant announced Tuesday that it will begin using the name Navient later this year. The new name comes about after Sallie Mae decided to split its business into two unique, publicly traded companies.
While Sallie Mae will remain the name of the company's consumer banking business, Navient, the soon-to-launch company that will handle loan management, servicing and asset recovery company to be launched, will be the name of the local operations center in Hanover Township
Jack Remondi, president and CEO of Sallie Mae, announced the name and new logo to employees this morning at the company's headquarters in Delaware. Remondi will serve as Navient's CEO.
"Our new name ... symbolizes the expertise, experience, and dedication we consistently deliver for our clients and customers," Remondi said in a release. "Helping our customers navigate the path to financial success is everything we stand for."
Raymond J. Quinlan will serve as executive chairman of the Board and will lead the banking business that will keep the Sallie Mae name as its CEO.
The strategic plan created by the company last year calls for the creation of two companies, each initially owned by Sallie Mae's existing shareholders. Sallie Mae would form an education loan management business composed of the company's portfolios of federally guaranteed (FFELP) and private education loans, as well as most related servicing and collection activities. This will be Navient.
Sallie Mae's private education loan origination and servicing businesses, including Sallie Mae Bank, the Sallie Mae Upromise Rewards program and the private education loans it currently holds, will operate separately under the Sallie Mae brand. This will be a consumer education lending franchise with expertise in helping families save, plan and pay for college.
Upon completion of the transaction, Navient is expected to service nearly $300 billion in student loans, providing customer support to assist 12 million customers in paying their education loans. Navient also will continue to perform asset recovery for government, higher education and business clients, as well as manage a portfolio of FFELP and private loans.
The Navient name "won't be used until the spin-off occurs by the end of the second quarter, and it won't be used by customers until the fourth quarter when servicing operations are expected to begin under the new name," said Sallie Mae spokeswoman Nikki Lavoie.
Sallie Mae, formerly known as SLM Corp., started its operations locally in 1987 at the former Faith Shoe factory on Beekman Street in South Wilkes-Barre. The Wilkes-Barre employees relocated to a newly built center in the Hanover Industrial Estates in 1990.
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