Navient Loan Servicer Facing Lawsuit Actions
There are many types of student loans, but few student loan servicers offer such abundant options as Navient, one of the leaders in student loan servicing business.
Current and prospective borrowers may not know that Navient is formerly Sallie Mae, who was bought out in October 2014, before the company split off into two and Navient was born. Navient emphasizes financial relationship building with its customers and offers a wide variety of helpful repayment options.
The new company, Navient, has assumed all the responsibilities previously performed by Sallie Mae as a federal loan servicer. A loan servicer is a company that handles the billing and other services on your federal student loan. The loan servicer works with you on repayment plans and loan consolidation and assists you with other tasks related to your federal student loan.
If Sallie Mae was the loan servicer for your William D. Ford Federal Direct Loan (Direct Loan) Program or Federal Family Education Loan (FFEL) Program loans owned by the U.S. Department of Education (ED), Navient now manages your loans. Your loans were not transferred. This was a name change that did not impact the existing terms, conditions, interest rate, or available repayment plans of your federal student loans.
- Third-largest servicer of federal loans as of December 2015.
- 40+ years experience serving borrowers
- $300 billion in student loans serviced
- 7,000+ employees in 10+ states
- 12 million student loan customers served
Deferments and forbearance options
Making payments on time and in full can become a problem if you’ve lost a job or encountered a financial hardship. Navient offers deferment and forbearance programs designed to alleviate any temporary money difficulties without sending you into debt.
Education-related deferment: A payment postponement for borrowers in graduate fellowship programs, rehabilitation training, internship or residency, or teaching in teacher shortage areas.
In-school and Parent PLUS Borrower deferment: For borrowers enrolled in school at least half-time, or for parents with a Parent PLUS loan with a child enrolled in school.
Unemployment deferment: If you’re out of work or work less than 30 hours a week, you may be eligible for unemployment deferment, which halts loan payments for up to three years. There’s also an economic hardship deferment with the same term.
During financially tough times, Navient’s forbearance options give borrowers a break on their loans by postponing their principal payments — though keep in mind that interest still accrues during this period.
Many Students are also qualifying for the Obama Student Loan Forgiveness Program