Navient is one of the largest student loan servicers in the United States, managing the repayment of student loans for millions of borrowers. The company was originally part of Sallie Mae, a private student loan provider, but became a separate entity in 2014. Navient works with both federal and private student loan programs to help borrowers manage their debt and provide support throughout the repayment process.
The services offered by Navient include loan consolidation, which allows borrowers to combine multiple federal student loans into a single loan with a single monthly payment. This can help simplify the repayment process and lower monthly payments for some borrowers. Navient also offers income-driven repayment plans, which are designed to make student loan repayment more manageable by linking monthly payments to a borrower’s income. This can help lower monthly payments for borrowers who are struggling to repay their loans.
Navient also provides loan rehabilitation services, which allow borrowers who have defaulted on their student loans to get back on track with their payments. This process involves working with a loan servicer to make a series of payments over a set period of time, after which the loan is considered rehabilitated and the default is removed from the borrower’s credit report. Additionally, Navient offers loan forgiveness options for borrowers who meet certain eligibility criteria, such as those who work in certain public service jobs or in certain non-profit organizations.
Despite its role as a student loan servicer, Navient has faced significant criticism for its business practices. The company has been sued by several states and the Consumer Financial Protection Bureau (CFPB) for allegedly mismanaging loans and providing substandard customer service. Critics have accused Navient of steering borrowers towards more costly repayment options, such as loan consolidation and income-driven repayment plans, rather than providing them with information on alternative options that may have been more beneficial to them.
In light of these controversies, Navient continues to be a major player in the student loan industry. The company remains one of the largest student loan servicers in the country and continues to offer a range of services to help borrowers manage their student loan debt. Despite the criticism it has faced, Navient remains committed to helping borrowers successfully repay their loans and achieve their educational goals.