The Character Off SERVICERS For You.S. Institution Away from Degree-Owned Funds

Exactly who We have been

Navient keeps served the funding children make inside college or university because of the providing him or her navigate an intricate government student loan program produced by Congress. Even after a maze regarding barriers to own consumers you to definitely poorly demands change, i have added ways by broadening registration inside the affordable fee preparations and you can enabling scores of Americans successfully pay their pupil financing. Off 2009 by way of 2021, Navient offered education loan servicing to the U.S. Company out-of Education, and then we try pleased with the task i done for individuals.

• More than 400,100 individuals repaid its college loans annually 1
• Navient individuals was indeed 34% less likely to want to default dos
• More than half out of Navient-maintained government loan regularity was signed up for Money-Determined Payment plans.

Servicers regarding government student loans, and Agencies out of Studies-had loans, don’t set mortgage words eg interest levels, loan restrictions, and you can cost applications. As an alternative, they are founded because of the government. Servicers begin working which have college student individuals immediately after of many important ount so you’re able to borrow or and that college or university to attend.

What to Realize about Legal actions Connected with NAVIENT

Originating in , the consumer Financial Shelter Agency (CFPB) and you can half dozen county attorney standard submitted litigation facing Navient saying good particular allegations.

NAVIENT’S Arrangement With State Lawyer Standard

To your , Navient announced preparations that have county lawyer standard to resolve every before unveiled multistate lawsuits and you may evaluation. If you are this type of accusations is actually false and you can baseless so we firmly faith we might prevail in courtroom, i chose to manage these matters to avoid the continued burden, costs, and you can distraction regarding condition litigation.

Details about The CFPB Suit

Registered when you look at the , brand new CFPB’s lawsuit facing Navient continues possesses nearly similar says as the those produced by the state lawyer general.

This new suit’s first allegation is the fact, throughout the Navient’s big date repair Agencies regarding Degree-possessed funds, Navient “steered” borrowers out of earnings-motivated fees (IDR) plans into forbearance. This or any other allegations elevated is false. Importantly, no legal has unearthed that Navient hurt users as so-called, and CFPB has never been able to identify actually one borrower so you can substantiate which allegation. The fresh new litigation continues, and the organization will continue to battle this type of baseless accusations when you look at the court.

To the , Navient submitted a motion for Conclusion View regarding CFPB suit, looking to overlook the situation in its totality.

1. While in the it is time once the an effective servicer to own Agencies away from Knowledge-owned figuratively speaking, Navient are a national commander inside registering individuals towards Income-Determined Fees (IDR) plans. More than half of one’s Institution off Knowledge financing Navient maintained had been signed up for IDR software – more any equivalent servicer. Additionally, servicers was paid up to help you 60% faster to own money when you look at the forbearance, generally there are zero economic demand for Navient position a borrower for the forbearance unlike a keen IDR bundle.
2. The fresh CFPB’s denial you to definitely Navient steered borrowers from IDR arrangements and you may with the forbearance try plainly untrue. In reality, immediately following almost eight many years of assessment and you can untrue claims, the brand new CFPB wasn’t in a position to pick even one borrower who was “steered” off an IDR bundle into the forbearance. That is because the company doesn’t do that.
3. Into majority from student education loans, attention accrues it doesn’t matter if the brand new debtor was in an IDR and other installment package or even in forbearance. Navient’s forbearance incorporate try constantly relative to, or below, almost every other significant servicers.
4. Navient given clear and simply realized notices to help you consumers from the IDR plans as well as their renewals
5. The fresh new CFPB cannot bring any research to help with their denial one to Navient’s practice of notifying borrowers throughout the IDR restoration is unjust and you can misleading, otherwise caused people individuals to overlook its revival deadline.
6. Navient precisely processed 10s off scores of borrowers’ repayments each year.
7. The new CFPB has did not give proof one to Navient mishandled debtor costs. Navient got a strong track how long for a mortgage loan to fund in Kansas record of making certain that debtor repayments were applied and you can assigned precisely.

Navient continues to vigorously defend alone against the CFPB’s baseless states with the issues and all of our solid abilities and you can service out-of our very own borrowers’ achievement while in the all of our big date since a beneficial servicer from Agencies of Training-owned college loans.