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According to the Federal Reserve, 4 in 10 people who go to college incur debt to pay for their education. Currently, individuals with outstanding student loan debt owe as much as $100,000 or more, with more than 40% owing between $20,000 and $99,999.
If you’re struggling with student loan debt, you certainly aren’t alone. Understanding your loan is an important first step in creating a viable plan to pay it back. You may be dealing with one of many student loan service providers, including Navient. Find out more about Navient below, including what to expect if this company is calling you, so you’re more educated about your student loan debt and avoid making mistakes on your student loans.
In This Piece
What Is Navient?
Navient is a student loan servicer. This means it’s a company that handles student loans, including the collection of those loans. Navient previously existed as an arm of Sallie Mae, the Student Loan Marketing Association. However, the company split off from Sallie Mae in 2014.
Is Navient Legitimate?
Yes, Navient is a real company with real contracts with student loan lenders. If this is your student loan servicer, it’s not a scam, and you can make your payments with confidence. Still, it’s always a good idea to keep records of all your debt payments in case you need to prove them later.
What Does Navient Do?
Note that Navient is not the lender. It didn’t loan you the money for the student loan or buy the student loan debt from your lender. It’s more of a middleman between the borrower and the lender and is responsible for a variety of tasks, including:
- Sending information about your student loan balances and when payments are due
- Working with you on deferrals and other measures when you’re in school or after you graduate
- Collecting payments from you
- Working with you to set up payment plans when necessary
- Reporting payments—both timely payments and late or missed payments—to the credit bureaus
Navient primarily services private student loans after ending its contract with the Department of Education in late 2021.
Why Is Navient Calling Me?
If Navient is your student loan service provider, it may call you for a number of reasons. Navient reps may contact you due to:
- A need to update your records or questions about information on your account
- To ensure everything is on track while you’re still in school
- Because your account is in danger of defaulting and you need to attend to it or set up payment plans
It’s important to pay attention to communication from your student loan provider so you can keep your account in good standing. Student loan servicers may also send you emails or mail, so watch for those types of communications as well. You should always know what company is servicing your student loan accounts so you can work with it to repay your loans.
Defaulting on your student loans can have great consequences on your finances, including your credit score. So, you should contact your loan servicer to find out what options you may have. For example, you can contact them to learn how to discharge your student loans, and for what programs you may qualify.
What Should I Expect When Navient Calls?
Always verify that someone calling about a debt is who they say they are. Check the phone number on your caller ID. You can look it up online or compare it with phone numbers listed on paperwork you might have from the company.
Avoid answering questions with personal information. Navient reps won’t call you and ask for specifics like your account number or Social Security number. They already have all the pertinent information they need in their files.
Whether Navient is calling you or you’re calling your student loan servicer, be prepared to discuss the best ways to deal with your debt. Have a plan for how much you can pay, and don’t be afraid to ask about payment plans and other options to help you get back on track if your student loan payments have fallen behind.
The Bottom Line
Student loan servicers want to collect the debt from you, but they also have a number of tools they can use to help you pay that debt. You also have options, including refinancing your student loans.
Not paying your student loans will affect your credit score. Always make sure you understand the terms of any loans or refinance loans and how they might impact your credit. See where your credit stands at Credit.com by checking out your free credit report card.
The post Who Is Navient and Why Are They Calling Me? appeared first on Credit.com.
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