Navient Student Loans: Updates on the Former Servicer

Note that the situation for student loans has changed due to the impact of the coronavirus outbreak and relief efforts from the government, student loan lenders and others. Check out our Student Loan Hero Coronavirus Information Center for additional news and details.

*          *          *

As of the end of 2021, Navient ended its long run as a servicer of federal student loans.

Navient was charged with managing billing and repayment-related questions on behalf of the Department of Education. A frequent target of the Consumer Financial Protection Bureau, the company was due to transfer nearly six million federal loan accounts to a new servicer, Maximus, before 2022. (Other federal student loan servicer stalwarts, FedLoan Servicing and Granite State, are also on the outs.)

If you have Navient student loans part of the federal Direct Loan program, look out for meaningful changes. If you have Navient loans that originated as Federal Family Education Loans or private loans, however, expect something like the status quo.

Here are the details:

Navient federal student loans: 3 changes to prepare for

Expect to receive correspondence from the Department of Education and your new student loan servicer. In the meantime, here are three developments coming down the pike.

1. Your loan will be transferred to a new servicer

According to the Education Department, you’ll be notified before and after the transfer via snail mail, email or both. If you hold one of the 5.6 million loan accounts being transferred, expect to hear directly from Aidvantage, the servicing division of new federal loan servicer Maximus.

Take action: Ensure your contact information has been updated on StudentAid.gov. Otherwise, your new servicer may have difficulty tracking you down.

2. You might not see an immediate difference in service

For better or worse, you might hear a familiar voice on the other end of the customer service line: As part of the move to transfer borrower accounts, Maximus was absorbing about 800 Navient employees.

More practically, your loan details, such as your balance and interest rate, won’t change as a result of having a new servicer. And you don’t have to worry about a gap in your loan status: If your loans are in deferment currently, for example, that won’t change under the watch of Maximus.

Take action: Plan to log into your StudentAid.gov account early and often to confirm your loan status.

3. Prepare for potential delays in service

When the Education Department attempted to transfer 35 million student loans from outgoing contractor ACS to other federal loan servicers in 2013, many borrowers weren’t properly notified or had their accounts incorrectly altered, according to a 2020 report from the Student Borrower Protection Center.

Take action: Get out ahead of any possible problems by downloading a complete record of your federal student loans via the StudentAid.gov website. This way, you’ll have evidence of repayment if Aidvantage/Maximus suddenly short you.

Timeline in 2021: Navient’s exit from federal loan servicing
Sept. 28: The Education Department announces it’s reviewing a proposal that would see Navient transfer its federal loan portfolio to Maximus.
Oct. 20: The Education Department approves the Navient-Maximus plan.
Dec. 31: The 5.6 million accounts were slated to be fully transferred.
“We are confident this decision is in the best interest of the approximately 5.6 million federal student loan borrowers who will be (transferred)… Our confidence… is bolstered by the fact that Maximus will be held to the stronger standards for performance, transparency, and accountability that FSA included in its recent servicer contract extensions.” — Federal Student Aid chief operating officer Rich Cordray

Navient private student loans: What to know

While there was much upheaval for Navient student loans of the federal variety, its private loan program, which includes Navient-owned Federal Family Education Loans (FFELs), wasn’t due for major change.

Highlights of Navient student loans

Repayment options for Navient student loans

On top of receiving your payments, the servicer is responsible for assisting with any repayment plan changes you request on your Navient student loans.

Repayment plans on Navient private loans follow a standard repayment plan. A standard plan means your loan balance is evenly divided across a set period. You can expect the same monthly payment during your loan term, which is outlined in your promissory note.

Deferment and forbearance options on Navient student loans will depend on your lender, your loan program and the terms outlined on your promissory note. However, if you’re having trouble repaying your Navient loans, contact the servicer to learn what your options are. If you have a cosigned loan, you and your cosigner may need to provide financial documents that show your inability to pay.

Navient addresses and customer service

If you have a question regarding your loan, finding the right Navient customer service team depends on your loan type, whether it be an FFEL or a private loan.

  • Navient website: https://navient.com/
  • Navient email: Log into your Navient account and use the “Email Us” option in the Help Center.
  • Navient social media: Facebook, Twitter

Federal Family Education Loans/Health Education Assistance Loans

  • Phone number: 888-272-5543 (U.S.); TDD: 877-713-3833
  • Hours of operation: Monday–Thursday 8 a.m.–9 p.m. and Friday 8 a.m.–8 p.m. (Eastern time)
  • Fax number: 800-848-1949 (U.S.); 001-570-821-6585 (international)

● Address for loan payments:
Navient
P.O. Box 9533
Wilkes-Barre, PA 18773-9533

● Address for cosigner loan payments:
Navient
P.O. Box 9555
Wilkes-Barre, PA 18773-9555

● Address for general correspondence and document submission:
Navient
P.O. Box 9500
Wilkes-Barre, PA 18773-9500

Private student loans

  • Phone number: 888-272-5543 (U.S.); TDD: 877-713-3833
  • Hours of operation: Monday–Thursday 8 a.m.–9 p.m. and Friday 8 a.m.–8 p.m. (Eastern time)
  • Fax number: 800-443-9723 (U.S.); 001-317-841-1713 (international)

● Address for loan payments:
Navient
P.O. Box 9000
Wilkes-Barre, PA 18773-9000

● Address for cosigner loan payments:
Navient
P.O. Box 9988
Wilkes-Barre, PA 18773-9988

● Address for general correspondence:
Navient
P.O. Box 9640
Wilkes-Barre, PA 18773-9640

Military service members with questions about their Navient student loans can find additional information about how to reach the servicer on Navient’s contact page.

When contacting any Navient student loan customer service department, make sure to include your account number to avoid additional delays.

Navient student loans: FAQ

What is Navient?

Navient is a longtime student loan servicer. It was created as an offshoot from Sallie Mae in 2014. As of 2022, it exclusively services private student loans, as well as Federal Family Education Loans.

Can I have a cosigner on my Navient private student loans?

You may have a cosigner on your Navient private student loans. Navient services various private student loan programs, which have different requirements regarding cosigned loans. It also offers cosigner release for eligible Navient private loans, if you meet certain requirements.

Does Navient offer military benefits?

Yes. Under the Servicemembers Civil Relief Act, military members receive benefits on their federal and private Navient loans. Some benefits include a 6% interest-rate cap and no fees on loans obtained before active duty service, active-duty payment deferment and more.

Is student loan forgiveness an option?

Private student loans have fewer forgiveness options, but Navient offers Total and Permanent Disability Discharge and death discharge for borrowers who meet certain qualifications. Each loan forgiveness program has its own eligibility requirements that borrowers must meet to be eligible for forgiveness.

How are payments applied if I’m past due on my bill?

The way a Navient payment is applied on a past-due bill depends on your loan type. For more information about how payments are applied, visit Navient’s About payments page.

Does Navient report payments to the credit bureaus?

Yes, Navient reports the status of your account to credit bureaus.

I don’t understand my Navient statement; where can I find help?

Depending on what type of loan you have, your Navient statement can look different. For a detailed guide, the servicer offers a visual statement overview for federal versus private loans.

Where can I find information on managing my account?

You can log into your Navient account to manage your account online. If you need additional support, see this account management guide on the Navient website. You can also contact Navient directly to speak to a representative about your student loans.

Can I pay my Navient student loan with a debit card?

Yes, you can make a Navient payment with a debit card over the phone or by mail. When calling, contact the appropriate Navient department (based on your loan type) and say “Make a payment,” then follow the prompts. If paying by mail, you can send a check from your debit account, making sure to include your Navient account number on the check.

Does Navient offer refinancing?

Yes, Navient offers NaviRefi that lets eligible borrowers refinance their federal and private student loans. However, NaviRefi is offered by invitation only to existing Navient customers who must meet additional criteria to qualify for its refinancing program.

How can I file a complaint against Navient?

Complaints against Navient for a private student loan can be directed to the Consumer Financial Protection Bureau.

Interested in refinancing student loans?

Here are the top 9 lenders of 2021!





Source link

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Previous post 10 Online Schools That Accept FAFSA (and How to Get Financial Aid)
Next post Using a Roth IRA to Pay for College: What You Should Know