Counseling Borrowers

Borrowers serviced by Navient are 37 percent less likely to default compared to others. Read more.

We follow a proven process of corresponding and communicating with borrowers to share important information and guidance so they can get back on the track to successful repayment.

We promptly contact borrowers with delinquent loans. We send detailed information about contacting us for guidance.

Learn more about our Delinquency Communications

Schools too can play an important role, providing all borrowers with valuable information on their loan and strategies for successful repayment.

Counseling Your Borrowers to Avoid Default


Helping Borrowers with Financial Education

Educating students about not defaulting on their student loans should begin at day one freshman year and for all new students. Students need to know what they owe! Encourage your students to:

Log in to the National Student Loan Data System (NSLDS)

Help your students make sound financial decisions. Ensure they:

  • Understand the financial obligation that comes with each student loan.
  • Receive financial literacy information from your office early and often while in school.
  • Know that making payments on their student loans while in school can reduce total loan cost.

Access more information for borrowers in the Financial Education section

Communicating with Customers Who Have Delinquent Loans

Defaulting on a student loan is a very serious matter. Students need to know that if they default:

  • The full amount of the loan becomes immediately due.
  • Outstanding interest is capitalized and collection fees may be added to the principal.
  • Wages may be garnished and income tax refunds and other payments seized and/or withheld.
  • The default is reported to credit bureaus, resulting in serious damage to their credit rating.

Consequences for Your School

Once your student borrowers graduate and are in repayment, if they default on their loans, there could be serious consequences for your school:

  • Schools with high cohort default rates may lose their eligibility to offer federal loans such as Direct Loans, Perkins Loans, and Pell Grants.
  • Schools that cannot offer federal student aid may have difficulty attracting and retaining students.

All schools need a successful student default management plan based on proven strategies. Help your students understand student loan repayment strategies and help ensure your school's ability to offer federal financial aid.

Get tips on Better Default Prevention

Learn how to create a plan in Default Management Plan