Navient's Private Loan Services: What You Need To Know

Navient is a company that provides technology-enabled education finance solutions to simplify complex problems and help millions of people achieve success. The company offers a range of services, including student loan servicing and private student loans. While Navient has faced criticism and lawsuits in the past for its lending practices and treatment of borrowers, it also provides a private loan forgiveness program for borrowers who attended predatory schools or are permanently disabled. As of October 21, 2024, Navient transitioned its student loan servicing to MOHELA, a non-profit, governmental corporation that helps families repay their student loans. This change may have implications for borrowers in terms of their loan management and available options for debt relief.

Navient's private loan forgiveness program

Navient is a company that provides technology-enabled education finance solutions to simplify complex problems and help millions of people achieve success. While Navient has offered federal student loan forgiveness programs, private student loans are not eligible for federal forgiveness programs.

However, Navient introduced a private loan forgiveness program for borrowers if their school engaged in misconduct. This program emerged due to pressure from regulators and lawmakers, who demanded accountability for Navient's role in financing fraudulent schools. The program is similar to the federal Borrower Defense to Repayment process but applies specifically to Navient's private loans.

To be eligible for Navient's private student loan forgiveness program, borrowers must have unpaid loans (originally from Navient or Sallie Mae) used to attend a for-profit school known for fraudulent or misleading practices. It is important to note that refund amounts can vary widely, and full refunds for fully repaid loans are rare, even when tied to school misconduct.

If you have private student loans and do not qualify for Navient's private loan forgiveness program, you may want to consider refinancing your loans. While refinancing is not the same as loan forgiveness, it could be a strategy to save money on student loan interest and potentially find a new lender.

To find out more about your specific situation and eligibility for loan forgiveness or refinancing, it is recommended to schedule a consultation with a student loan lawyer or financial advisor.

School Misconduct Discharge Application

Navient is a company that provides technology-enabled education finance to simplify complex problems and help people achieve success. However, it seems that Navient is transitioning its student loan servicing to MOHELA, a non-profit, governmental corporation dedicated to helping families successfully repay their student loans. MOHELA is one of the largest student loan servicers in America and has over 40 years of experience.

If you have taken out a private student loan with Navient and want to challenge it due to school misconduct, you can contact Navient and ask for a School Misconduct Discharge Application. This can be done by contacting Navient's Office of Consumer Advocate at (888) 545-4199 ext. 998214 or by email. The process of completing this application will likely take at least an hour.

In the application, you will need to explain in detail how your school misled, defrauded, and lied to you, and why you are entitled to loan relief. You will also need to gather supporting documentation to submit with your application. It is important to be thorough but concise in explaining why you should be entitled to relief from your private student loans.

It is worth noting that student loans potentially eligible for School Misconduct Discharge are direct-to-school loans to attend for-profit schools. Refinance loans and direct-to-consumer loans are not eligible for this program. Additionally, Navient requires an up-to-date job history since graduation or attendance and supporting documentation. While applying for a School Misconduct Discharge, you could also contact the Consumer Financial Protection Bureau (CFPB), which is a federal agency tasked with supervising certain financial institutions and enforcing consumer rights. They require the companies they supervise to respond in writing to consumer complaints. While there is no guarantee of a positive outcome, your complaint will help the CFPB understand and prioritize the problems that student loan borrowers are facing.

Student loan servicing

Navient has been accused of predatory lending practices, particularly with for-profit schools, and has settled with 39 state attorneys general on this matter. As a result, Navient was removed from the student loan servicing system and replaced by MOHELA, a non-profit, governmental corporation, in October 2024. MOHELA is now responsible for servicing Navient's loans and helping borrowers with their repayment plans. This transition is a standard business practice and borrowers can continue to access their accounts and make payments as before.

Navient does offer a private loan forgiveness program, although it is not widely advertised. This program is designed to address predatory debt linked to fraudulent schools. Borrowers who took out high-interest loans to attend schools known for misconduct, such as the Art Institutes, ITT Tech, and Westwood College, may be eligible for loan forgiveness. To apply, borrowers must request a School Misconduct Discharge Application from Navient and provide strong documentation of personal harm caused by school misconduct.

Additionally, Navient provides a program to help borrowers with private student loans who are totally and permanently disabled. If eligible, borrowers can apply for a Total and Permanent Disability Discharge to cancel their loans. This program also extends to veterans who have been rated 100% disabled by the VA due to a service-connected disability.

Loan forgiveness for disabled people

Navient provides technology-enabled education finance solutions and services student loans. However, Navient is transitioning its student loan servicing to MOHELA, a non-profit, governmental corporation dedicated to helping families successfully repay their student loans. MOHELA is one of the largest student loan servicers in America and has over 40 years of experience.

People with a total and permanent disability (TPD) may be eligible for a TPD discharge, meaning they don't have to repay their federal student loan(s) or complete their TEACH Grant service obligation. As of May 2023, around 492,000 borrowers have received loan forgiveness through TPD discharge.

To qualify for a TPD discharge, you must provide proof of a disability that severely limits your ability to work, now and in the future. This can be a physical or mental disability. There are multiple ways to qualify, including:

• A disability determination from the VA for a service-connected disability that is 100% disabling
• A rating of totally disabled based on an individual unemployability rating

Navient's private student loans

Navient is a company that provides technology-enabled education finance solutions to simplify complex problems and help millions of people achieve success. As of October 21, 2024, Navient has transferred its student loan servicing to MOHELA, a non-profit, governmental corporation that helps families repay their student loans. MOHELA is now the servicer of Navient's student loans, including private student loans.

If Navient is collecting on your private student loans, you can challenge them by contacting Navient's Office of Consumer Advocate at (888) 545-4199 ext. 998214 or by email. You can also reach out to the Consumer Financial Protection Bureau (CFPB), a federal agency that enforces consumer rights. While there is no guarantee of a favourable outcome, your complaint will help the CFPB understand the issues faced by student loan borrowers and protect consumers from unfair practices.

Additionally, Navient offers a School Misconduct Discharge Application for those who attended a predatory school and want to challenge their private student loans. As of June 2024, Navient updated this application, now requiring borrowers to explain in detail how their school misled, defrauded, or lied to them and why they are entitled to loan relief. The process also involves providing an up-to-date job history and supporting documentation. While this may pose additional challenges for borrowers, it is still recommended to apply, as it could lead to potential relief from private student loan obligations.

It is important to note that servicing transfers are a normal business practice, and MOHELA is not purchasing or merging with Navient. Borrowers do not need to take any action, as their Auto Pay enrollment and repayment plan options will automatically transfer to MOHELA. They can continue to receive communications and make payments using the same methods and account information as before.

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