The brand new Character From SERVICERS To own You.S. Agency Out-of Degree-Had Finance

Who Our company is

Navient has actually served the latest resource people build in the college or university because of the helping her or him navigate an elaborate federal student loan program created by Congress. Despite a maze away from barriers getting consumers you to poorly needs change, you will find contributed ways because of the growing subscription from inside the sensible commission agreements and you can providing an incredible number of People in america efficiently pay back its pupil funds. Out of 2009 owing to 2021, Navient considering student loan repair towards the You.S. Agencies from Education, so we try pleased with the task i done for borrowers.

• More than 400,100000 consumers paid the student loans on a yearly basis step 1
• Navient individuals have been 34% less inclined to default dos
• More than half regarding Navient-serviced federal loan frequency was subscribed to Earnings-Driven Repayment preparations.

Servicers of government figuratively speaking, in addition to Service away from Education-had finance, do not place loan conditions such as for instance rates, mortgage limitations, and you can installment programs. Instead, he or she is based by authorities. Servicers start working which have student borrowers after of many very important ount in order to obtain or and that college or university to visit.

Things to Know about Lawsuits Connected with NAVIENT

Beginning in , an individual Financial Security Agency (CFPB) and you will six condition attorney general submitted lawsuits facing Navient saying an effective sorts of accusations.

NAVIENT’S Arrangement That have State Attorney Standard

Into , Navient launched plans which have condition lawyer general to resolve every previously shared multistate litigation and you can assessment. While you are these allegations was untrue and you may baseless therefore highly believe we would prevail during the courtroom, i chose to manage these things to get rid of brand new continued burden, expense, and distraction off condition legal actions.

Factual statements about The fresh new CFPB Lawsuit

Submitted MI faxless payday loans instant cash advance from inside the , the latest CFPB’s suit against Navient continues possesses almost identical says because people made by the state lawyer general.

The new suit’s number one allegation is the fact, while in the Navient’s big date servicing Department regarding Education-possessed money, Navient “steered” consumers off money-passionate repayment (IDR) arrangements towards forbearance. Which and other accusations raised are false. Importantly, no legal possess discovered that Navient harm consumers as the so-called, therefore the CFPB is not capable pick also one to borrower to establish this allegation. The legal actions continues on, and also the organization will continue to endeavor these types of baseless accusations within the judge.

To the , Navient registered a movement for Realization Wisdom on the CFPB suit, seeking to overlook the instance in entirety.

1. During its time while the an excellent servicer for Agencies from Knowledge-owned figuratively speaking, Navient are a national leader when you look at the registering consumers towards the Income-Passionate Repayment (IDR) preparations. Over fifty percent of your own Company from Education money Navient serviced have been subscribed to IDR applications – more than one similar servicer. Also, servicers is paid up so you can 60% quicker getting finance from inside the forbearance, generally there are no economic demand for Navient establishing a debtor inside forbearance unlike an enthusiastic IDR plan.
2. The CFPB’s denial one to Navient steered individuals out of IDR arrangements and you will on forbearance is plainly not the case. Actually, after almost eight many years of evaluation and untrue says, brand new CFPB was not capable identify actually you to definitely debtor who had been “steered” off an IDR plan toward forbearance. This is because the business will not accomplish that.
3. Towards majority out of student loans, attention accrues no matter whether the new debtor was a student in an enthusiastic IDR and other repayment package or perhaps in forbearance. Navient’s forbearance usage try constantly prior to, otherwise less than, other biggest servicers.
4. Navient provided obvious and easily understood observes so you can individuals regarding IDR plans in addition to their renewals
5. The new CFPB cannot bring one facts to support its assertion you to definitely Navient’s practice of alerting borrowers from the IDR revival is actually unfair and you may deceptive, otherwise brought about people borrowers to overlook the restoration due date.
6. Navient correctly processed 10s out-of millions of borrowers’ payments annually.
7. The fresh CFPB keeps failed to bring evidence that Navient mishandled borrower payments. Navient got a powerful history of making sure borrower repayments was basically applied and you can designated precisely.

Navient continues to intensely safeguard itself against the CFPB’s baseless says with the products and all of our strong overall performance and support out-of our very own borrowers’ success throughout the time due to the fact an effective servicer off Agencies out-of Education-possessed student education loans.