Is Navient a Private Student Loan?
Navient is not a private student loan. It is a loan servicing company that primarily manages and administers federal student loans on behalf of the U.S Department of Education. While it also services private student loans, Navient does not offer them directly.
Since its establishment in 2014 as a spin-off from Sallie Mae, Navient has become one of the largest loan servicers in the United States. The company manages loans for over 12 million borrowers, handling everything from repayment plans and loan forgiveness to customer service and collections.
Navient’s Role in Federal Student Loans:
Navient plays a crucial role in the administration of federal student loans. When students take out federal loans, such as Direct Subsidized Loans, Direct Unsubsidized Loans, or Direct PLUS Loans, Navient often becomes their loan servicer.
As a loan servicer, Navient assists borrowers in managing their loans throughout the repayment process. They handle tasks like processing payments, providing important loan information, helping borrowers choose the best repayment plans, and managing loan forgiveness programs. They also provide customer support and guidance for borrowers who encounter financial difficulties.
It’s important to note that while Navient manages the loan servicing, the actual loans themselves are not issued by the company. Instead, federal student loans are funded by the U.S Department of Education, which sets the interest rates and terms.
Private Student Loans and Navient:
While Navient primarily deals with federal student loans, the company also services private student loans. Private student loans are loans taken out from private lenders, such as banks or credit unions, to finance educational expenses.
Navient’s involvement with private student loans mainly revolves around loan servicing activities. They handle billing, customer service, repayment management, and collection efforts for private student loan borrowers. However, it is important to clarify that Navient does not originate private student loans; they solely manage and administer them on behalf of the private lenders.
FAQs:
1. Can I apply for a student loan directly with Navient?
No, Navient does not originate or directly offer student loans. They focus on loan servicing for both federal and private loans.
2. Is Navient affiliated with the U.S Department of Education?
Navient is not affiliated with the U.S Department of Education, but they work as a contracted loan servicer for federal student loans.
3. Can I choose my loan servicer if I have federal student loans?
No, loan servicers are assigned by the U.S Department of Education, but borrowers can request a transfer to a different servicer under certain circumstances.
4. Are there any advantages to having Navient as a loan servicer?
Navient’s extensive experience and resources can be beneficial for borrowers. They aim to help borrowers manage their loans and guide them through different repayment options and loan forgiveness programs.
5. Can Navient change while I’m in the middle of repaying my loan?
Yes, loan servicing can be transferred from one servicer to another. If your loan is assigned to Navient initially, it may be transferred to a different servicer at a later time.
6. Can I consolidate my federal loans through Navient?
Yes, Navient offers loan consolidation services for federal student loans through their platform. This allows borrowers to combine multiple federal loans into one loan, potentially simplifying repayment.
7. Does Navient offer loan forgiveness programs?
Navient assists borrowers in managing loan forgiveness programs, such as Public Service Loan Forgiveness (PSLF) and Teacher Loan Forgiveness. They provide guidance on eligibility requirements and help borrowers with the necessary paperwork.
8. Can I refinance private student loans through Navient?
Navient does not refinance private student loans, but they can provide information and resources to borrowers interested in refinancing options.
9. What happens if I am unable to make my loan payments?
If you are facing financial difficulties and cannot make your loan payments, Navient offers assistance programs and resources to help you explore options such as income-driven repayment plans or deferment/forbearance.
10. Is it possible to change loan servicers?
In certain situations, borrowers may be eligible for a loan servicer transfer. However, the decision ultimately lies with the U.S Department of Education.
11. Can I make extra payments towards my loan principal with Navient?
Yes, Navient allows borrowers to make extra payments towards their loan principal. This can help reduce the overall interest accrued and may shorten the repayment period.
12. Can I access my loan information and make payments online through Navient?
Yes, Navient provides an online portal where borrowers can access their loan information, make payments, sign up for automatic payments, and manage their account electronically.