Navient Student Loans – What To Do Following The Lawsuit

By Mentor Staff | Edited By Mentor Staff

Updated On November 2, 2021

Editorial Note: This content is based solely on the author's opinions and is not provided, approved, endorsed or reviewed by any financial institution or partner.

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If you have Navient student loans, then pay attention.

The lawsuit filed last week against Navient, the largest student loan servicer in the country, hit home with many borrowers with Navient student loans who say they have had similar experiences.

Lost paperwork. Misapplied payments. Surprise late fees. Processing delays. Overall confusion.

Top Picks For Student Loan Refinancing

December 2022

Variable APR ?APR, or Annual Percentage Rate, is the price you pay to borrow money. Variable APR means that your interest rate can fluctuate over time, which can increase or decrease your monthly student loan payment. Typically, a variable-rate loan has a lower introductory rate than a fixed-loan rate loan. Variable APR includes a 0.25% discount when you enroll in autopay.
Fixed APR ?APR, or Annual Percentage Rate, is the price you pay to borrow money. Fixed APR means that your interest rate will always stay the same. Even if interest rates change, your interest rate or monthly payment will not. Fixed APR includes a 0.25% discount when you enroll in autopay.
APR
4.49% - 8.99%
4.49% - 8.99%
4.49% - 8.99%

View Details

on SoFi's website

Overview

Variable APR:
4.49% - 8.99%
Fixed APR:
4.49% - 8.99%
Minimum Credit Score:
650
Minimum Income:
None
Fees:
None
Minimum Loan Amount:
$5,000 ($10,000 in CA)

Details

Eligible Loans:
Private & Federal
Eligible Degrees:
Undergraduate & Graduate
Loan Terms:
5, 7, 10, 15, 20 years
Borrower Residency:
All states
Hardship Deferment:
Yes
Co-signer Option:
Yes
3.99% - 8.29%
4.39% - 8.99%
3.99% - 8.99%

View Details

on Earnest's website

Overview

Variable APR:
3.99% - 8.29%
Fixed APR:
4.39% - 8.99%
Minimum Credit Score:
650
Minimum Income:
None
Fees:
None
Minimum Loan Amount:
$5,000

Details

Eligible Loans:
Private & Federal
Eligible Degrees:
Undergraduate & Graduate
Loan Terms:
5-20 years
Borrower Residency:
All States except NV
Hardship Deferment:
Yes
Co-signer Option:
No
3.99% - 8.29%
4.39% - 8.99%
3.99% - 8.99%

View Details

on NaviRefi's website

Overview

Variable APR:
3.99% - 8.29%
Fixed APR:
4.39% - 8.99%
Minimum Credit Score:
650
Minimum Income:
None
Fees:
None
Minimum Loan Amount:
$5,001 ($10,001 in CA)

Details

Eligible Loans:
Private & Federal
Eligible Degrees:
Undergraduate & Graduate
Loan Terms:
5-20 years
Borrower Residency:
All States except NV
Hardship Deferment:
Yes
Co-signer Option:
No
3.53% - 7.24%
4.48% - 7.29%
3.53% - 7.29%

View Details

on ELFI's website

Overview

Variable APR:
3.53% - 7.24%
Fixed APR:
4.48% - 7.29%
Minimum Credit Score:
680
Minimum Income:
$35,000
Fees:
None
Minimum Loan Amount:
$10,000

Details

Eligible Loans:
Private & Federal
Eligible Degrees:
Undergraduate & Graduate
Loan Terms:
5, 7, 10, 15, 20 years
Borrower Residency:
All States
Hardship Deferment:
Yes
Co-signer Option:
Yes
2.50% - 8.65%
3.99% - 8.49%
2.50% - 8.65%

View Details

on Splash's website

Overview

Variable APR:
2.50% - 8.65%
Fixed APR:
3.99% - 8.49%
Minimum Credit Score:
640
Minimum Income:
None
Fees:
None
Minimum Loan Amount:
$5,000

Details

Eligible Loans:
Private & Federal
Eligible Degrees:
Undergraduate & Graduate
Loan Terms:
5 – 25 years
Borrower Residency:
All states
Hardship Deferment:
Varies
Co-signer Option:
No
5.09% - 11.67%
5.39% - 11.87%
5.09% - 11.87%

View Details

on Citizens' website

Overview

Variable APR:
5.09% - 11.67%
Fixed APR:
5.39% - 11.87%
Minimum Credit Score:
Not disclosed
Minimum Income:
$24,000
Fees:
No prepayment or origination fees
Minimum Loan Amount:
$10,000

Details

Eligible Loans:
Private & Federal
Eligible Degrees:
Undergraduate & Graduate
Loan Terms:
5, 7, 10, 15, 20 years
Borrower Residency:
All states
Hardship Deferment:
Yes
Co-signer Option:
Yes
2.50% - 6.80%
4.49% - 6.90%
2.50% - 6.90%

View Details

on Laurel Road's website

Overview

Variable APR:
2.50% - 6.80%
Fixed APR:
4.49% - 6.90%
Minimum Credit Score:
660
Minimum Income:
None
Fees:
None
Minimum Loan Amount:
$5,000

Details

Eligible Loans:
Private & Federal
Eligible Degrees:
Undergraduate & Graduate
Loan Terms:
5, 7, 10, 15, 20 years
Borrower Residency:
All States
Hardship Deferment:
Yes
Co-signer Option:
Yes
3.27% - 6.87%
3.99% - 10.68%
3.27% - 10.68%

View Details

on LendKey's website

Overview

Variable APR:
3.27% - 6.87%
Fixed APR:
3.99% - 10.68%
Minimum Credit Score:
680
Minimum Income:
$24,000
Fees:
None
Minimum Loan Amount:
$5,000

Details

Eligible Loans:
Private & Federal
Eligible Degrees:
Undergraduate & Graduate
Loan Terms:
5, 7, 10, 15, 20 years
Borrower Residency:
All states, except ME, ND, NV, RI, WV
Hardship Deferment:
Yes
Co-signer Option:
Yes
-
3.94% - 9.08%
3.94% - 9.08%

View Details

on ISL's website

Overview

Variable APR:
-
Fixed APR:
3.94% - 9.08%
Minimum Credit Score:
670
Minimum Income:
None
Fees:
None
Minimum Loan Amount:
$5,000 ($10,000 in CA)

Details

Eligible Loans:
Private & Federal
Eligible Degrees:
Undergraduate & Graduate
Loan Terms:
5, 7, 10, 15, 20 years
Borrower Residency:
All states, except OR and ME
Hardship Deferment:
Yes
Co-signer Option:
Yes

If you have Navient student loans, here are some more action steps that you can take to protect your interests and take control of your student loans:

1. Navient Student Loans Tip #1 – Always communicate in writing

If you have Navient student loans, how many times have you called Navient and been assured that your request was processed, only to find out later that this was not the case?

Not only is it frustrating, but it is also may be difficult to dispute later — particularly if your student loan servicer’s error resulted in a late fee or some other expensive miscalculation.

If you have Navient student loans, make sure to put all correspondence in writing.

This includes formal requests, payment instructions and any other material issues related to your student loans. When you keep an organized paper trail of your correspondence, you will have all supporting documents in one place in case of any issues.

2. Navient Student Loans Tip #2 – Sign up for automatic payments

Enrolling in automatic payments is a must-do for any student loan borrower.

In many cases, you may be eligible for a 0.25% interest rate deduction when you enroll in automatic payments.

This will also help ensure that your student loan payment reaches your student loan servicer on time each month. Do not rely on sending a paper check via regular mail because there is no guarantee that your check will arrive on time or at all.

There are two primary ways to enroll in automatic payments: one is with your bank and the other is with your student loan servicer’s online platform. The preferred method is to enroll directly with your student loan servicer’s online platform so that you can create a direct paper trail in case of any dispute. Plus, free bill pay at some banks is sent via paper check (rather than electronically through ACH), which can lead to further delay.

Enrolling in auto payments will be particularly important if your student loan servicer changes during the course of your student loan (which you should expect to occur at least once). When your student loan servicer changes, make sure to update your automatic payment information to your new student loan servicer (and stop automatic payments for your previous student loan servicer).

3. Navient Student Loans Tip #3 – Monitor your credit score

If you have Navient student loans, your outstanding debt and your ability to make on-time monthly payments impact your credit score.

Therefore, it is essential that you regularly monitor your credit score and credit reports for errors. There are three major credit bureaus: Experian, Equifax and Transunion. You can request a copy of your credit report from each lender, or check AnnualCreditReport.com.

Don’t rely on your student loan servicer to make sure your student loan payments are reported accurately to the credit bureaus. If the CFPB lawsuit allegations are correct, it is possible that your student loan servicer will make mistakes throughout the life of your Navient student loans.

Therefore, it is incumbent upon you to be vigilant and pro-active to spot any mistakes as soon as they happen so you can correct them.

You’re right – this shouldn’t be your responsibility to have to double-check your Navient student loans. Unfortunately, it is a feature of the imperfect student loan system. However, you will save time and avoid stress by monitoring your credit reports regularly to ensure accuracy.

4. Navient Student Loans Tip #4 – Contact the U.S. Department of Education

If you have Navient student loans and feel that you are being treated unfairly by your student loan servicer, or you otherwise want to file a formal complaint regarding your federal student loans (e.g., Stafford, Direct, PLUS, Perkins), you can contact the U.S. Department of Education through the Office of Federal Student Aid. You can expect to hear back from the U.S. Department of Education within 15 days and be provided with a resolution within 60 days.

5. Navient Student Loans Tip #5 – Contact the Consumer Financial Protection Bureau

If you want to file a formal complaint regarding your private student loan (e.g., issued by a bank, credit union or school) or your federal loan servicer, contact the Consumer Financial Protection Bureau.

The CFPB is charged with supervising financial services companies and enforcing federal consumer financial laws. Once you submit a complaint to the CFPB, the CFPB will forward your complaint to the student loan company or servicer, which will have 15 days to respond regarding your complaint and the proposed steps that will be taken to resolve your complaint. Once you receive the company’s response, you have 60 days to provide feedback.

6. Navient Student Loans Tip #6 – Understand all your student loan options

One role of your student loan servicer is to help you understand your available options with regard to your student loans.

However, don’t rely solely on your student loan servicer to provide you with all the facts regarding your Navient student loans. Do your homework, invest the time and get informed. Your financial situation is unique, and therefore you need to find the option that is in your personal best interest. Don’t let your student loan servicer steer you toward a short-term option when you should choose the long-term solution.

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