The fresh new Role Out of SERVICERS Getting U.S. Agencies Out-of Knowledge-Possessed Finance

Just who Our company is

Navient have offered the brand new financial support youngsters build for the college or university from the providing her or him browse an intricate government student loan program created by Congress. Even after a maze of barriers for consumers one to badly need change, i’ve led the way in which from the broadening registration in affordable percentage arrangements and you will helping millions of People in the us properly pay back the scholar finance. Away from 2009 through 2021, Navient offered student loan repair toward You.S. Agencies from Education, and we are happy with work i done for individuals.

• Over eight hundred,000 consumers paid down the figuratively speaking yearly 1
• Navient consumers were 34% less likely to want to standard 2
• Over fifty percent out of Navient-serviced government financing volume is actually signed up for Money-Inspired Cost plans.

Servicers off government student education loans, and additionally Institution out of Knowledge-possessed fund, do not set mortgage conditions eg rates, mortgage constraints, and you will cost apps. Rather, he could be centered from the government. Servicers begin working that have scholar consumers immediately after of numerous crucial ount to use or and that college to visit.

What things to Know about Litigation Connected with NAVIENT

Beginning in , the consumer Financial Coverage Bureau (CFPB) and you can half dozen condition lawyer general filed lawsuits against Navient asserting a great sorts of accusations.

NAVIENT’S Arrangement That have County Attorney General

Towards , Navient launched arrangements that have county attorneys general to resolve every before shared multistate legal actions and you can assessment. When you’re these allegations is untrue and baseless and in addition we highly trust we might prevail for the legal, i chose to care for these things to prevent the fresh new continued load, costs, and distraction regarding state lawsuits.

Details about The newest CFPB Suit

Registered from inside the , the newest CFPB’s lawsuit up against Navient continues on and has now nearly identical claims because the those produced by the state attorney standard.

The fresh new suit’s no. 1 allegation would be the fact, during the Navient’s day servicing Agency away from Training-possessed loans, Navient “steered” consumers off income-passionate fees (IDR) agreements toward forbearance. That it or any other accusations raised was not the case. Notably, zero legal provides discovered that Navient damage customers as alleged, in addition to CFPB is not able to choose even one debtor in order to establish this allegation. The newest legal actions goes on, additionally the providers will continue to fight these types of baseless accusations for the legal.

On , Navient recorded a motion to possess Summary Judgment about CFPB suit, trying disregard the circumstances within the totality.

1. Throughout it is time as an excellent servicer to own Agency away from Degree-owned figuratively speaking, Navient try a national commander inside the joining borrowers towards the Money-Inspired Payment (IDR) agreements. Over fifty percent of your own Company out-of Studies financing Navient maintained was indeed enrolled in IDR software – more than any similar servicer. In addition, servicers is actually paid up so you can sixty% quicker for finance from inside the forbearance, so there try no economic demand for Navient place a debtor in the forbearance instead of an IDR package.
2. The CFPB’s assertion you to Navient steered consumers away from IDR preparations and you may towards forbearance are evidently false. In fact, shortly after nearly seven numerous years of comparison and untrue states, the CFPB wasn’t able to choose also one borrower who was “steered” out-of a keen IDR plan towards forbearance. This is because the business will not do that.
3. On the most regarding student education loans, notice accrues it doesn’t matter if the fresh new debtor was in a keen IDR or other loanlucky.com/mortgage/delaware mortgage cost plan or in forbearance. Navient’s forbearance need is actually usually in accordance with, or lower than, other significant servicers.
4. Navient offered obvious and easily realized sees to borrowers regarding the IDR plans in addition to their renewals
5. This new CFPB couldn’t offer people evidence to help with their denial you to definitely Navient’s habit of alerting consumers regarding the IDR renewal try unjust and you will inaccurate, otherwise brought about one consumers to overlook their renewal due date.
6. Navient accurately processed tens out of an incredible number of borrowers’ costs on a yearly basis.
7. The CFPB possess don’t bring evidence you to Navient mishandled borrower money. Navient had a robust track record of making sure borrower payments were used and assigned precisely.

Navient will continue to strenuously guard by itself contrary to the CFPB’s baseless claims toward circumstances and you can our very own strong performance and you may support off all of our borrowers’ achievements while in the our very own day due to the fact good servicer from Institution of Training-owned college loans.