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How good are Navient student loans in helping to get safely through college education?

I have to take a loan to complete my college education. I hope not to be overpowered by future debt, I want to know how to consolidate student loans. I’d like information relating to the various repayment plans on student federal loans. I’m not sure about deciding on Navient student loans for aid in paying for my college expenses. The student loan repayment options and interest charges; I really worry about incurring high-interest rate charges when it comes to paying back student loans. Is Navient as a loan servicer a good option to consider?

Rodney Fox

in Student Loans

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Bethany Evans on October 29, 2018

Navient comes third, after AES and Great Lakes, in the list of the largest federal student loan servicers in the U.S. It was founded in 2014 on Sallie Mae (nickname for the Student Loan Marketing Association) being divided into two companies. Sallie Mae was established in 1972 by the U.S.

Congress and was a government-sponsored enterprise until 2004; turning into a private corporation. Today, Sallie Mae and Navient are two, totally separate public firms; their shares have been traded on the NASDAQ stock exchange.

Navient is engaged with nearly 7 million borrowers having a total debt of more than $200 billion; Navient covers approximately 22% of the direct loans issued by the U.S Department of Education; providing services for numerous private student loans. The company is in possession of a number of debt collection subsidiaries like General Revenue Corporation and Pioneer Credit Recovery.

Similar to other loan servicers, Navient is an intermediary between the lender (the U.S. government) and its borrowers. Navient dispatches bills and account statements, helps borrowers to change payment plans, processes payments and handles deferment or forbearance requests. It also endorses borrowers requiring loan forgiveness.

You could begin by setting up an account on Navient’s website; tools are available to help manage student loans issued by the federal government. Account holders are able to change repayment plans, set up autopay, get information about loan forgiveness, calculate payoff times, change due dates, and have tax documents printed.

Repayment plans: Student loans serviced by Navient have the same repayment options set by the U.S Department of Education. There are various repayment plans to choose from like:

  • Standard repayment has equal monthly payments over a period of 10 years.
  • Extended repayment requires equal monthly payments to be completed over a 25-year period.
  • Graduated repayment; these have initial small monthly payments which gradually increase at intervals over a time period of either 10 or 25 years.

Navient also provides assistance to eligible borrowers for enroling in a few federal income-driven repayment programs; payments at a certain percentage deduction of income.

If you are experiencing difficulties in making payments on student loans, contact Navient’s customer service department. A borrower who is unemployed or undergoing financial hardship can apply for deferment or forbearance; advice on student loan consolidation would be helpful too.

Nonetheless, it should be noted that federal loan services cannot reduce your interest rates. Payment postponement and payoff time extension lead to longer debt periods and higher interest rates.

Tad Frazier3 months ago

Navient is considered to be one of the country’s largest loan servicers, managing around 1 in 5 of student loans offered by the federal government. You can get information relating to student federal loans from Navient’s website; educational resources guiding borrowers on how to handle their finances: a blog on financial tips, budgeting worksheets, and several “Career Playbook” and “Path to Success” videos. The company’s mobile app is convenient for loan payment. There are mixed reviews concerning the application but it does basically function the same as the website.

However, it is known that many Navient-serviced loan borrowers have been able to reduce their monthly payments; saving much money over their loan period by refinancing with private lenders. Private lenders can offer notably lower interest rates than the standard rates determined by Congress for federal loans. Borrowers who owe a minimum of $5,000, have completed their degrees, and possess favorable credit scores are in a strong position to gain from refinancing.  


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