Navient is a student loan management company
While Navient does not actually make loans, it does collect monthly student loans payments on behalf of the federal government, private banks, and other lenders.
Below are some of the services that Navient offers to borrowers:
- Information on federal and private student loan options
- Financial tips and budgeting worksheets
- Repayment programs (including Income-Driven Repayment plans)
- Loan consolidation
- Payment management and billing options (including Auto Pay)
- Deferment and forbearance options
- Delinquency and default information
- Borrower counseling
- Tax documents
- Path to Success (an interactive video series focused on different aspects of student loans)
- Career Playbook (27-part YouTube video series focused on career training)
- SCRA (Servicemembers Civil Relief Act) options
- Credit report information and resources
- Fraud prevention resources
Navient was previously part of Sallie Mae until the companies split in 2014. It currently handles over $300 billion in both federal and private student loans, servicing over 12 million borrowers or roughly 25% of total student borrowers in the US.
Reviews for Navient
BBB Rating: A+ (BBB Accredited since 3/8/2016)
Consumer Affairs Rating: 1 star (out of 5)
Credit Karma Rating: 2.6 stars (out of 5)
For more information, you can contact Navient directly through their contact form or by the information below:
P.O. Box 9500
Wilkes-Barre, PA 18773
Recent Legal Actions
In January 2017, the CFPB filed three separate lawsuits against Navient in a combination of both state and federal actions.
According to the lawsuits, Navient is accused of widespread misconduct and cheating student loan borrowers out of millions by steering them into programs that were both unnecessary and costly and that served only to benefit Navient’s bottom line.
The lawsuits accused Navient of using multiple tactics to illegally drive up repayment costs for student loan borrowers for their own gain.
These tactics include:
- Incentivizing employees to steer borrowers toward forbearance options instead of readily available Income-Based Repayment programs, essentially cheating borrowers out of lower payments and profiting at their expense
- Misleading borrowers about the terms of their Income-Driven Repayment plan renewals, causing them to lose many of the associated benefits and profiting as a result
- Misreporting the loan discharges of large numbers of disabled borrowers as “defaults” to their lenders, thereby hurting their credit scores as a result
- Repeatedly mishandled loan payments
- Hiding important borrower information in the fine print of their documentation
- Creating unnecessary obstacles to allow borrowers to release co-signers from their student loans
There are also claims that Pioneer Credit Recovery, a Navient subsidiary, mislead defaulted borrowers about federal student loan rehabilitation programs and profited from the additional costs incurred.
While the total cost of Navient’s actions to student borrowers are unknown at this point, the resulting damages could reach into the billions. These lawsuits include alleged wrongdoings from as far back as 2010.
Navient has vehemently denied any wrongdoing and stated that the lawsuits were politically motivated and that the company was threatened by the CFPB to settle these matters prior to Inauguration Day. The company also stated that it plans to “vigorously” fight the lawsuits in court.’