Although Aidvantage now services the majority of Navient’s federal student loans, FFEL Loans and private student loans are still serviced by Navient.
Prior to terminating its contract with the Education Department last December and shifting millions of accounts to Aidvantage, Navient was one of the biggest federal student loan servicers. Presently, Navient continues to service millions of private student loans as well as federal loans made under the Federal Family Education Loan Program.
Use studentaid to determine whether your student loan is federal or private. gov. You can view a list of all federal student loans you have taken out by logging in with your Federal Student Aid ID. It is a federal loan if you see one of your Navient loans there.
Navient still services federal and private loans
To service and collect student loan debt, Sallie Mae established the private company Navient.
One of the biggest student loan servicing companies in the nation at one point was Navient. It handled three types of loans:
After receiving criticism from lawmakers and the Consumer Financial Protection Bureau for years over its dubious business practices, Navient terminated its contract with the Education Department at the end of last year, and millions of student loan borrowers were transferred to Aidvantage.
It also agreed to cancel $1 billion in debt with 39 states. 7 billion in delinquent private student loan debts. Read more about the Navient settlement.
Despite those major decisions, Navient isn’t closing. It reported first-quarter 2022 earnings of $135 million.
If you still owe Navient money, the loans are either private or FFEL loans.
Learn More: FFELP Loan Forgiveness
How do I know if my Navient loan is federal or private?
You can find out what kind of loan you have with Navient in one of three ways:
Check your credit report to see if any loans are listed there, or call Navient’s customer service department at 800-722-1300, if you’re unsure if you have a Navient loan. The representative can access any records it has for you using your Social Security number.
Forgiveness and repayment options
Depending on whether you have a federal or private loan, you may be able to lower your payments and be eligible for student loan forgiveness.
If you have FFEL Loans
By switching to an income-driven repayment plan, you can obtain a reasonable monthly payment that is based on your income and the size of your family. Additionally, the IDR plans forgive any outstanding debt after 20 or 25 years of regular payments. Less is said about what happens to student loans after 25 years in this article.
If you combine your loans into a Direct Consolidation Loan, you may also be eligible for the Public Service Loan Forgiveness Program and the interest-free payment pause forbearance. Your new loan’s interest rate will be based on the weighted average of your prior rates.
Consolidating your debt can also improve your chances of being exempt from any general student loan cancellations that President Biden or Congress may approve.
If you have private student loans
There are few options to lower your student loan payments. You can:
Navient offers refinancing options, but you can also use a tool like Credible to prequalify with multiple lenders without adding a hard pull to your credit history. After you apply, you can compare refinance rates, loan terms, and origination fees.
For the best refinancing options, you’ll need a credit score in the 700s or a cosigner with good credit.
Need help with a Navient student loan? Let’s talk.
You should review your options for repaying your student loans now that President Biden has announced the coronavirus forbearance will end in September in order to position yourself for success.
Schedule a call with me if you need assistance developing the best strategy for you. I’ve spent years assisting individuals like you with their student loans.
Reach out. I can assist you in creating a plan to finally pay off your student loan debt.
FAQ
Is Navient still servicing federal student loans?
Although it no longer manages federal student loans, Navient continues to manage private student loans.
Are Navient loans federal or private?
Sallie Mae was initially established by Congress to support the federal student loan program, but it was eventually privatized. Navient is a private company that the U. S. Department of Education once hired to service its federal loans.
Will my Navient student loans be forgiven?
If you work in public service or have been repaying student loans for at least 20 years, Navient offers student loan forgiveness for FFEL loans. Navient loans are no longer accessible for Biden’s student loan forgiveness program as a result of a lawsuit brought in Missouri.
How many federal loans does Navient service?
Although the loan servicer’s forgiveness will benefit 66,000 borrowers of student loans in the U S. , it only represents a tiny portion of the outstanding student loan debt.