Three students chatting on college campus

What Is Navient?

TLDR

What You Need To Know

  • Navient collects payments, provides customer support and maintains private and Federal Family Education Loan Program (FFELP) loans
  • Navient faced several lawsuits over claims of predatory loan servicing in 2017
  • As of the end of 2021, all federal student loan borrowers serviced by Navient are now serviced by Aidvantage

Contents

Navient – which was a spinoff from Sallie Mae – is a student loan service provider for private and Federal Family Education Loan Program (FFELP) student loan borrowers.

The company was recently involved in several lawsuits, including a multistate lawsuit with 39 attorneys general. As a result of the settlement they reached, several changes have been made that affect student loan borrowers. 

If your loans used to be serviced by Navient, stick around to find out what’s next for the company – and you.  

What Does Navient Do?

As a loan servicer, Navient collects payments, provides customer support and maintains loans for private and Federal Family Education Loan Program (FFELP) loans. If you’re not sure what type of student loan you have, log into your account on StudentAid.gov for a list of your federal loans and servicers. If you have private student loans, you can review your credit report to confirm the details of the loans. 

Is Navient a Federal Student Loan Servicer?

Navient no longer services federal student loans. The company used to service multiple types of federal student loans, but in 2021, it ended its contract with the Department of Education (DOE).[1] As of the end of 2021, all federal student loan borrowers serviced by Navient are now serviced by Aidvantage.[2] 

What Was the Navient Lawsuit About?

Navient faced several lawsuits over claims of predatory loan servicing in 2017. One lawsuit was filed by 39 attorneys general and a similar case was filed by the Consumer Financial Protection Bureau (CFPB), claiming borrowers had been denied their repayment rights.[3][4]

Navient allegedly pushed borrowers who could not afford their student loan payments to apply for forbearance rather than more affordable income-driven repayment plans

While a settlement has been reached with the attorneys general, the lawsuit filed by the CFPB is still navigating through the courts. In 2020, Navient filed a motion to dismiss the CFPB’s case.[5]

The Navient settlement and who qualifies

Navient reached a deal with the attorneys general in January 2022 and agreed to cancel loan balances for 66,000 borrowers and provide approximately $145 million to the states.[6] By July, Navient notified affected private student loan borrowers who were eligible for debt cancellation and sent restitution payments to qualifying federal student loan borrowers.[3] 

What Should You Know About Navient and Student Loan Forgiveness?

Private student loans serviced by Navient are not eligible for debt forgiveness under the Biden administration’s student debt relief plan.[7] But if your federal loans were transferred to Aidvantage, you may be eligible for debt forgiveness. Visit the DOE website for the most up-to-date eligibility info. 

If you’re struggling to pay our Navient loans, contact Navient’s customer service or visit their website. Navient has repayment options to help you avoid defaulting on your loans.

In the Know About Navient

Navient has changed – a lot. But there are a few changes to keep in mind: 1) Navient no longer services federal loans; all their federal loans were transferred to Aidvantage. 2) Borrowers who qualified for debt cancellation have been notified. And 3) Borrowers with Navient student loans are ineligible for Biden’s federal student debt relief plan.

  1. Navient. Navient receives approval to transfer Department of Education servicing contract to Maximus. Retrieved October 2022 from https://news.navient.com/news-releases/news-release-details/navient-receives-approval-transfer-department-education

  2. Federal Student Aid. “Federal Loan Servicer Updates.” Retrieved October 2022 from https://studentaid.gov/announcements-events/loan-servicer-updates

  3. Navient Multi-State Settlement. “Navient AG Multi-State Settlement.” Retrieved October 2022 from https://www.navientagsettlement.com/Home/portalid/

  4. Consumer Financial Protection Bureau. (2017, January 18). “CFPB Sues Nation’s Largest Student Loan Company Navient for Failing Borrowers at Every Stage of Repayment.” Retrieved October 2022 from https://www.consumerfinance.gov/about-us/newsroom/cfpb-sues-nations-largest-student-loan-company-navient-failing-borrowers-every-stage-repayment/

  5. Navient. “Legal Action Facts.” Retrieved October 2022 from https://news.navient.com/legal-action-facts

  6. Navient. “Navient announces successful resolution of legal matters with state attorneys general.” Retrieved October 2022 from https://news.navient.com/news-releases/news-release-details/navient-announces-successful-resolution-legal-matters-state

  7. Navient. (2022, September 30). “Debt Relief Updates.” Retrieved October, 2022, from https://navient.com/debt-relief-updates

ICYMI

In Case You Missed It

  1. Navient settled with the attorneys general in January 2022 and agreed to cancel loan balances for 60,000 borrowers and provide approximately $145 million to the states

  2. Private student loans serviced by Navient are not eligible for debt forgiveness under the Biden administration’s student debt relief plan

  3. If you’re struggling to pay your Navient loans, contact Navient’s customer service or visit their website

You Should Also Check Out…