What is Navient?
Founded in 2014, Navient Corporation is a relatively new Public Organisation that serves and collects Student Loans. Its headquarters are based in Wilmington, Delaware, United States of America and Navient is considered the largest federal student loans servicer and, on behalf of the Department of Education, it also acts as a Loan collector. While being founded, Navient was initially named Sallie Mae when it was first established in 1973. Founded as a Government-Sponsored Enterprise or GEC, Sallie Mae is actually a nickname to Student Loan Marketing Association. In 2014, Sallie Mae was split into two different entities known as Navient and Sallie Mae Bank to separate their loan portfolio from the rest of their operations. So basically, Navient is a spin-off of Sallie Mae’s loan servicing operations. Navient has about 6,000 employees at different offices all across the United States. Navient manages almost $300 billion for more than 12 million customers on student loans.
Navient is dedicated to helping their clients and customers to reach the path of financial success. John F. Remondi is current the Chief Executive Officer and President of Navient. He is also called Jack Remondi. John Kane is the Chief Operating Officer, Somsak Chavibul is the Chief Financial Officer, Tim Hynes is the Chief Risk Officer, Andy Beamon is the Chief Business Development Officer, Steve Hauber is the Chief Audit Officer, Pat Lawicki is the Chief Information Officer, Sheila Tyan-Macie is the Chief of Staff and Jerry Maher is the Senior Vice President. Navient claims to offer really impressive employment opportunities in over 15 geographic locations including Puerto Rico along with its subsidiary companies like Xtend Healthcare, Gila Corporation, General Revenue Corporation, and Pioneer Credit Recovery.
First and foremost what any customer needs to do to get a loan is to login via Navient Login. It’s a fairly simple and extremely common process. The person needs to just Sign up or Register to create an account and finally start accessing Navient services. Navient offers different student loans to customers based on their needs and necessities. They can choose whatever program fits them best. These are the lost of loans Navient lends.
William D. Ford Direct Federal Loan Program: The William D. Ford Direct Federal Loan program is lent by the United States Department of Education. Under this, they offer:
- Direct Subsidized Loans for undergraduate students where no interest will be charged while the person is still in school at least half-time and also during deferment periods.
- Direct Unsubsidised Loans for undergraduate, graduate, and professional degree students where no interest is charged on unsubsidized loans during all periods.
- Direct PLUS Loans for Parents: Direct PLUS Loans for Parents is given to parents of dependent undergraduate students and the interest is charged during all periods. The parent will be considered the primary borrower.
- Direct PLUS Loans for Graduate Students: This loan will be given to graduate and professional degree students where the interest is charged during all periods.
- Direct Consolidation Loans: This Loan is lent to borrowers who want to combine their eligible federal student loans into a single loan.
Private Student Loans: Private loans are mainly lent to help students manage school costs above and beyond a federal loan.Federal loans usually have fixed interest rates and loan eligibility requirements, but, Private Loan eligibility requirements, interest rates, and terms will differ from lender to lender. Forbearance and Deferment options are not offered by all Private Student Loans. Private Student Loans are lent by a Bank or a credit union. Late fees are accessed. Differences between Federal and Private Loans are;
- A student may be required to make payments while he or she is still in school and during grace or separation and deferment periods.
- Interest rates may be fixed, but if they are variable then there are chances they will go up.
- Private Loans are not subsidized and that’s why interest is charged throughout the process and it may also not be tax deductable.
Federal Family Education Loan Program: Fereral Family Education Loan or simply FFELP is lent by a bank or a credit union. Under this, they offer:
- Federal Stafford Subsidized Loans and this is for undergraduate students where no interest will be charged while the student is still in school at least half-time and during deferment periods.
- Federal Stafford Unsubsidized Loans and this is for undergraduate, graduate, and professional degree students where interest will be charged on unsubsidized loans during all periods.
- FFELP PLUS Loans for Parents: The Federal Family Education Loan Program For Parents is for parents of dependent undergraduate students where interest will be charged during all periods.
- FFELP PLUS Loans for Graduate Students: The Federal Family Education Loan Program For Graduate Students is of course for graduate and professional degree students where interest will be charged during all periods.
- FFELP Consolidation Loans: The Federal Family Education Loan Program Consolidation Loans are for borrowers or students who combined their eligible federal student loans into a single loan.
Navient Repayment Plans
All Borrowers (Parents and Students) with Direct Subsidized and Unsubsidized Loans, Federal Stafford Subsidized and Unsubsidized Loans, and Direct PLUS and FFELP PLUS Loans for Parents and Graduate Students can make use of the three repayment plans Navient is providing them with. If the borrower has a Private loan, then he or she must contact Navient and their other loan providers or servicers to find out what options are available. If a borrower has a Federal Loan then he or she must review their repayment plan options with these repayment plans:
Standard Repayment Plan
Standard Repayment Plans will last for up to 10 years and always come with fixed Monthly payment amounts with the start of $50 every month. Monthly payment amounts that are based on the borrower’s total loan amount. The more the borrower owes, the higher his or her monthly payment will be. The borrower will, however, pay less interest on their loan over time if they opt for this plan.
Extended Repayment Plan
Extended Repayment plans are available for almost all students with more than $30,000 in Direct Loan or the Federal Family Education Loan Program loan debt. Under this plan, the borrower will have 25 years to pay up their loans and choose from either fixed or graduated payments. The Fixed repayment plan will offer the same monthly payment amount for how long the loan can exist and Graduated payments will slowly increase with time for the borrowers.
Graduated Repayment Plan
Graduated Repayment Plan will account for an increase in income during the student of borrower’s post-college career. These payments will usually start lower and will increase every two years and the repayment term will generally be up to 10 years and it can also be longer for Consolidation Loans.
In order to understand how a borrower’s payments are allocated and applied, Navient explains all to its clients and customers. Each time the borrower or student or parent makes a student loan payment, it usually helps pacify a lot of their loan portion. It is generally first applied to the fees and then to the outstanding interest and then to the principal. The borrower’s payment may be distributed and applied differently and it depends on whether the borrower has a federal or private loan. The status of his or her loan, and if he or she have multiple loans that are joined into one billing or loan group then the borrower’s payment will be distributed and applied differently.
Payment Allocations fo Federal Loans
- William D. Ford Federal Direct Loan Program is owned by the United States Department of Education
- Federal Family Education Loan Program is also owned by the United States Department of Education
- Health Education Assistance Loans are owned by third party lenders.
Private Loans payment allocation and application may be different based on how the borrower’s loan is has been serviced.
Navient Student Loan Forgiveness
In some cases, Navient does provide Student Loan Forgiveness and will give out applications and forms based on the customer or borrower requirements. Under certain circumstances, the borrower’s federal student loan balance may be forgiven or canceled or discharged. The Public Service Loan Forgiveness is given when the borrower (Mostly the student in this case) get a job at a government or non-profit organization and repays his or her loans based on his or her income. The borrower may qualify for forgiveness of his or her direct loans after 10 years of payment and employment. They also provide with the Teacher Loan Forgiveness if the borrower teaches full-time for five consecutive academic years. This job must be continuous at the same low-income elementary school or a secondary school or an educational service agency. If this requirement is met, then the borrower will probably become eligible for forgiveness of $17,500 on their direct loan or Federal Family Education Loan Program.
Navient gives out separate applications for Discharge and Forgiveness and Total Permanent Disability. They also give out Certificate Forms for Nurses and Teachers in Maryland, Oregon, Virginia, and Washington.
Navient Customer Service
Navient provides all types of contact information for their various programs offered. For people requiring help with FFELP and HEAL Loans, the provided Navient Phone number is 888-272-5543. They have also provided addresses for Borrowers, Cosigners and for General Correspondance and Document Submission. This is separate for both Federal and Private Loan sections. The website provides with all the required information. They are active on Facebook, Twitter, Linkedin, Google+ and YouTube.