The fresh Part From SERVICERS For U.S. Agencies Of Education-Had Fund

Which We’re

Navient features served new funding pupils make when you look at the university by enabling them navigate a complex federal student loan system developed by Congress. Even after a maze away from obstacles to have borrowers one to poorly means reform, i’ve added ways because of the increasing subscription from inside the reasonable payment plans and you may enabling scores of Americans successfully pay back its student finance. Of 2009 thanks to 2021, Navient offered student loan upkeep on the You.S. Service of Education, and we also is pleased with the work i accomplished for borrowers.

• More 400,100 consumers paid down its student education loans every year 1
• Navient borrowers was in fact 34% less likely to standard 2
• Over fifty percent away from Navient-serviced federal loan volume try signed up for Income-Inspired Cost plans.

Servicers out-of federal student loans, and additionally Service of Knowledge-owned funds, do not place mortgage terminology eg rates of interest, financing constraints, and you can cost software. As an alternative, he or she is mainly based by federal government. Servicers start working having college student individuals just after of a lot very important ount so you can use or and that university to go to.

What things to Learn about Legal actions Related to NAVIENT

While it began with , an individual Monetary Safety Agency (CFPB) and you will six condition attorneys standard filed litigation facing Navient asserting a great variety of allegations.

NAVIENT’S Agreement With County Lawyer General

Towards the , Navient revealed plans that have county attorney general to resolve the in earlier times revealed multistate litigation and assessment. When you are such accusations are not the case and you can baseless and we also highly believe we could possibly prevail from inside the legal, we chose to take care of these matters to cease the newest went on burden, costs, and you can distraction from condition litigation.

Information about The fresh new CFPB Lawsuit

Registered inside the , the fresh CFPB’s lawsuit up against Navient continues on and contains nearly the same claims since the those produced by the official attorneys standard.

The fresh suit’s top allegation is the fact, while in the Navient’s go out servicing Company regarding Knowledge-had loans, Navient “steered” borrowers out-of income-motivated payment (IDR) preparations into forbearance. That it and other allegations increased are not true. Importantly, zero court keeps unearthed that Navient harmed users while the so-called, therefore the CFPB is never capable identify also one to debtor so you can establish which allegation. The legal actions goes on, and also the business continues to battle these types of baseless accusations in the court.

For the , Navient registered a motion for Summary View on CFPB lawsuit, trying overlook the instance within its totality.

1. Throughout the its time since the a great servicer having Agency of Degree-possessed student loans, Navient was a national leader from inside the joining individuals toward Income-Inspired Payment (IDR) arrangements. More than half of the Department regarding Degree finance Navient serviced was basically enrolled in IDR software – more than one similar servicer. In addition, servicers is paid-up so you’re able to sixty% quicker to own financing inside forbearance, so there is actually no financial need for Navient establishing a borrower within the forbearance instead of a keen IDR bundle.
2. New CFPB’s assertion one to Navient steered individuals of IDR agreements and you can into the forbearance is evidently not true. Actually, after almost eight numerous years of assessment and you may not the case claims, the latest CFPB wasn’t able to select actually one borrower who was “steered” away from a keen IDR bundle with the forbearance. That is because the organization will not do that.
3. With the most of college loans, focus accrues no matter whether the fresh new borrower was in an IDR and other installment plan or even in forbearance. Navient’s forbearance need is actually always prior to, otherwise lower than, almost every other big servicers.
4. Navient provided obvious and simply know observes so you’re able to consumers regarding IDR agreements in addition to their renewals
5. The brand new CFPB cannot give any evidence to support its denial you to Navient’s practice of notifying consumers throughout the IDR revival try unfair and you can misleading, otherwise caused any consumers to miss its restoration deadline.
6. Navient precisely processed tens off an incredible number of borrowers’ repayments every year.
7. The fresh new CFPB have don’t promote proof you to Navient mishandled borrower payments. Navient got a robust reputation making sure debtor costs was basically applied and you may designated precisely.

Navient continues to strenuously safeguard alone contrary to the CFPB’s baseless claims to the points and you can all of our solid results and you will support away from the borrowers’ achievement through the the big date as the a good servicer out-of Agency of Degree-had figuratively speaking.