Navient is an incredibly significant player in the marketplace for student loans. In 2014, it broke off from Sallie Mae, a loan provider, servicer, and administrator, with more than 12 million borrowers and more than $300 billion in government and private student loan services.
Private student loan borrowers can negotiate with Navient directly if they want to settle a past-due debt. However, paying back your students loans can be a difficult process to navigate.
If you are struggling to pay back your private student loan from Navient, it’s essential to understand the repayment options. It is important to also know that Navient does sue for loans that go into default. Therefore, if you want to get a student loan, you should also do so with the full intention of paying it back.
Overview of the Navient Student Loan System
There is no such thing as a “Navient Student Loan Repayment” plan, and it is doubtful that Navient lenders can obtain the reimbursement that the CFPB calls for in the foreseeable future.
Navient borrowers with federal student loans may be eligible for a revenue-driven repayment plan for one of the federal student loan waiver programs, such as Public Service Loan Waiver or Redemption. Through these services, however, redemption takes patience, and it’s not instant. For example, it takes at least 10 years of making on-time payments to apply for PSLF.
There are several general student loan-forgiveness programs, however, for which Navient borrowers can qualify. Let’s take a look at the available Navient Loan Repayment options today.
What Kinds of Student Loans Does Navient Have?
Navient and Sallie Mae are now entirely different organizations, despite once being the same organization. Redemption for Navient loans is not the same as redemption for Sallie Mae loans.
Nevertheless, Navient offers a combination of private and federal student loans. You’re going to want to know what kind of loan you have. It makes a significant difference in terms of which payment services you are eligible for.
To find out what kind of student loans you have with Navient, you can contact them directly on the National Student Loan Data System (NSLDS) or do a “Financial Analysis.”
When you have federal student loans, all of the national repayment plans are available for such loans. However, that is not the case with commercial student loans. Private student loans may be available for repayment through student loan waiver services unique to the state or occupation.
Types of Student Loan Offerings
If you’re a dependent undergraduate student — meaning you rely at least partially on your parents for financial assistance — then the most you can take out of joint federal subsidized and joint unsubsidized loans is $5,500 a year.
If you are in search of a master’s degree in business administration, an MBA loan from Navient is targeted at those attending business school. This will pay up to 100 percent of your school-certified costs and provides a six-month grace period and up to 48 months postponement for an internship after you graduate.
Dental and Medical School Loans
Navient’s dental and medical school loans have a 20-year loan term, allowing you more time to repay the loan and more manageable monthly payment. At the start of your training, there is a 36-month grace period. You can borrow up to the cumulative cost of your program participation.
How to Apply and Qualify for Grants and Students Loans
To qualify for a Navient student loan, you must meet the following requirements.
- Borrows must be at least 18 years of age in most states.
- Borrowers must be citizens of the United States or permanent residents. DACA students or foreign residents can apply if they have a co-signer who is a US citizen.
- You or your co-signer must have enough revenue to receive a loan of a particular size.
- You, or your co-signer, must pass a credit check.
Navient does not charge fees for the origination or fines for the prepayment. However, if you miss a payment, there is a late charge of five percent of the lost payment amount, up to a maximum of $25.
The period between the acceptance of loans and disbursement of loans can be lengthy. Once your credit has been accepted, Navient will give your school a certification letter. Most schools only approve requests 30 days before the start of enrollment.
You will not hear back about the funds you need until a few weeks before school starts, even though you have applied for a loan months in advance.
Note: There are risks involved when applying for and using credit. Consult the bank’s terms and conditions page for more information.