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The fresh new Character Away from SERVICERS To own You.S. Service Off Knowledge-Possessed Finance

Who We have been

Navient has offered the new financial support people make during the school from the helping her or him browse an intricate government student loan system created by Congress. Despite a maze from barriers to possess consumers one to poorly needs change, i’ve contributed ways by broadening registration from inside the reasonable payment arrangements and you can enabling countless People in the us successfully repay the beginner loans. Out-of 2009 courtesy 2021, Navient given student loan repair on the You.S. Agencies away from Degree, therefore try pleased with the task we done for consumers.

  • More eight hundred,000 consumers reduced their student education loans every year 1
  • Navient consumers was in fact 34% less likely to standard 2
  • Over fifty percent of Navient-serviced federal financing frequency are subscribed to Earnings-Passionate Cost preparations.

Servicers of federal figuratively speaking, in addition to Institution regarding Degree-possessed finance, do not put mortgage terms including rates, loan constraints, and you may cost applications. Alternatively, he’s based by the federal government. Servicers start working with beginner individuals just after of a lot important ount so you can use otherwise and that school to attend.

What you should Realize about Legal actions Involving NAVIENT

Beginning in , the user Financial Coverage Bureau (CFPB) and you may six condition attorneys standard registered legal actions up against Navient asserting a beneficial variety of accusations.

NAVIENT’S Arrangement That have County Attorney Standard

Toward , Navient revealed plans having condition attorneys standard to answer every before uncovered multistate litigation and you may comparison. If you’re this type of accusations is incorrect and you will baseless and in addition we strongly trust we might prevail inside the judge, i decided to handle this stuff to eliminate the new proceeded weight, costs, and you may distraction of state lawsuits.

Factual statements about New CFPB Suit

Recorded inside , the newest CFPB’s suit facing Navient goes on possesses almost similar says since the people from the state lawyer standard.

This new suit’s no. 1 allegation is that, through the Navient’s day upkeep Service of Degree-possessed fund, Navient “steered” consumers from earnings-motivated repayment (IDR) preparations to the forbearance. That it and other allegations increased was false. Notably, zero courtroom keeps unearthed that Navient hurt users just like the so-called, therefore the CFPB has never been able to select even one to borrower so you’re able to establish this allegation. Brand new lawsuits goes on, therefore the company continues to fight such baseless accusations for the judge.

On , Navient recorded a motion to possess Summation View in the CFPB suit, seeking overlook the situation within the entirety.

  1. While in the it is time once the good servicer to possess Department out-of Studies-owned college loans, Navient was a nationwide commander within the registering individuals to your Income-Motivated Cost (IDR) plans. Over fifty percent of your own Agency off Knowledge finance Navient serviced was signed up for IDR applications – over people equivalent servicer. Also, servicers is actually paid up so you’re able to sixty% smaller to own loans for the forbearance, so there is zero financial demand for Navient place a debtor during the forbearance instead of an enthusiastic IDR plan.
  2. New CFPB’s assertion you to Navient steered individuals out-of IDR arrangements and you may toward forbearance try evidently incorrect. In reality, immediately after almost seven several years of investigations and you will incorrect claims, new CFPB wasn’t able to identify even you to borrower who was simply “steered” from an enthusiastic IDR bundle towards the forbearance. That is because the organization does not do that.
  3. On the bulk out-of figuratively speaking, appeal accrues it doesn’t matter if the fresh borrower was a student sign in in a keen IDR or other cost package or even in forbearance. Navient’s forbearance use was constantly according to, or lower than, almost every other big servicers.
  4. Navient offered obvious and simply understood sees so you’re able to consumers regarding IDR arrangements in addition to their renewals
  5. New CFPB cannot bring any facts to help with its assertion you to definitely Navient’s practice of alerting individuals about IDR revival are unfair and you may deceptive, or brought about any individuals to overlook the restoration due date.
  6. Navient correctly processed tens of an incredible number of borrowers’ costs every year.
  7. This new CFPB enjoys didn’t render facts one to Navient mishandled debtor repayments. Navient had a robust reputation making certain that debtor costs was indeed used and you can designated truthfully.

Navient will continue to intensely defend itself contrary to the CFPB’s baseless claims towards the facts and you will our good abilities and you can help regarding the borrowers’ achievements throughout our big date while the a servicer from Agency out-of Degree-owned figuratively speaking.

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