Answers for Our Student Loan Customers
Q: Navient services one or more of my student loans. How do these lawsuits affect me?
A: The terms of your loans remain the same. You should continue making payments on your loans as usual. As always, we remain available to help you online, by email, and by phone.
"Don't be afraid to seek help through repayment programs. I struggled with paying loans when I first graduated because of the entry level position I had obtained. Instead of seeking a payment program, I simply did not pay the loan. It ruined my credit and took years to dig myself out. If I would have sought out repayment programs, I could have saved myself late fees and bad credit.
I always do a review of net income and bills twice a year. When teacher wages were frozen, I knew to look for repayment plans that would fit my budget.
As a single income household, I knew I would need help to repay my loan. I spoke with a representative and discovered that this program would be my best fit. Once my income increase, I can increase the amount that I pay on the loan.
Q: How is Navient responding to these allegations, and what happens next with the lawsuits?
A: Plainly stated, these allegations are unfounded and are designed to get headlines rather than help student loan borrowers.
We will defend ourselves vigorously against these unsubstantiated claims. But our core goal remains the same: to help our customers achieve financial success. We will not be distracted by the accusations or allow them to impact our customer service. You can continue to contact us and access our resources, just as you always have.
Q: How can I learn more about income-driven repayment (IDR) plans?
A: Income-driven repayment plans are available to qualifying borrowers with federal student loans. These repayment plans can be a valuable option for those with high debt relative to their current income.
Keep in mind that stretching out payments over a longer period of time may cost more over the life of the loan. The good news is that you can make extra payments to pay off earlier or change to another repayment plan.
After qualifying payments for 20 to 25 years, you may be eligible for loan forgiveness of any remaining balance. Direct Loan borrowers working in public service may be eligible for loan forgiveness after 10 years of qualifying payments.
Fact: 49% of loan balances serviced by Navient for the federal government are enrolled in IDR plans.
Find out more information about Plans Based on Your Income.
Q: Why is forbearance used when enrolling in income-driven repayment?
A: Forbearance is often a required tool to help borrowers enroll in federal IDR plans.
Fact: Nearly 70% of IDR borrowers needed forbearance for one of two reasons.
Past-due borrowers cannot enroll in IDR unless they bring their account current. Doing so typically requires forbearance to cure the delinquency.
Borrowers may need forbearance during the time it takes to gather the required documentation and complete the federal IDR application without becoming past due.
"Navient has allowed me to pay a very low payment, which helps me repay my debts but not stopping my growth as an adult. For example, buying a house, expanding our family, etc. All things that cost extra money and also take discipline in saving for. Paying on a Income Driven repayment option allows me to pay what I can truly afford, and not stop me from growing as a individual in today's society."
Q: Will my credit be affected by the lawsuit?
A: No. It is important to understand how student loans can affect your credit score.
Fact: The Fair Credit Reporting Act requires that reported information, such as missed payments, must be accurate.
Fact: Student loan servicers are required to report federal student loan payment status to the credit reporting agencies.
A federal student loan delinquency is usually reported to the credit reporting agencies after a payment has been missed for 90 days. Private student loan reporting often occurs earlier, such as after 45 days of non-payment.
Q: Are private loans affected?
A: The terms on all loans remain the same. The private loans referenced in the suits pertain to a specific subset of private education loans made many years ago.
As a reminder, Navient separated from Sallie Mae in 2014, and Navient does not originate private education loans.
Fact: Private education loans are not eligible for the federal government-sponsored benefits such as income-driven repayment plans.
Navient is committed to working with private education loan customers and their cosigners who may be facing difficulty to identify repayment options based on their individual circumstances.
"Essentially whittling down payments worked best for me. I'd pay some here and some there, always paying a little more than the minimum balance. Navient.com made it easy for me to maintain my student loan balance and made my life a whole lot simpler!"
More Online Help for Our Customers
Our Path to Success video series helps borrowers understand repayment, IDR plans, military benefits, and more.
Read tips and strategies about repayment, budgeting, and career planning on our Consumer Finance Blog.