Navient Student Loans
Originally known as Sallie Mae, the Navient Corporation is the largest servicer of student loans in the United States. Sallie Mae was originally formed as a governmental entity. However it was eventually privatized and then spun-off into Navient. If you took out a student loan with the U.S. Department of Education, there is a decent chance it was serviced by Navient. Currently, a substantial part of Navient's business is to lend and service private student loans.
At the Law Office of Simon Goldenberg PLLC, our lawyers help people find solutions to their student loans. Depending on the circumstances, we can assist with lawsuit defense, settlement, consolidation, forgiveness, or even loan rehabilitation. We have successfully assisted a number of borrowers with respect to resolving their student loans, and sometimes eliminating a large portion of their debt as part of the process.
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Example Navient Student Loan Settlement
A debtor contacted our law office for an evaluation regarding his loans. He defaulted on his private student loan to Navient and owed a balance of over $23,500. He was concerned about the interest that was continually accruing, which was causing his balance to increase. He wanted to get into a resolution that would stop the interest and keep him safe from being sued.
In less then 2 months after hiring us, we achieved a settlement of $7,200 to be paid as $800 down, then $400 per month thereafter. This is a reduction of 70% off the current balance. Not only does our client stand to save over $16,000, the settlement is also broken into affordable monthly installments.
The arrangement that we negotiated for this particular client provides that our client will not have to pay for the additional interest that accrues during the settlement period. Most importantly, by settling the loan, the borrower will not have to worry about being sued by Navient.
In this case, we leveraged our client's financial hardship in an effort to compel the lender to agree to the settlement terms. Lenders are generally under no contractual or legal obligation to negotiate or accept any settlement. Prior result do not guarantee future performance. Each client has unique circumstances, and each negotiation is conducted independantly.
Background Information on Navient
Founded in 1973 by the United States Congress, Sallie Mae was created as a quasi-governmental, quasi-private institution for the purposes for servicing Federal student loans originated under the Federal Family Education Loan Program (FFEL). Under the William D. Ford Direct Student Loan Program, the Clinton administration expanded the role the U.S. Department of Education in the servicing of Federal student loans. As a result, a lot of business between the U.S. and Sallie Mae slowed down. Eventually, the FFEL contract with the U.S. government was taken away from Sallie Mae permanently, and in 2004 Sallie Mae fully privatized.
Sallie Mae continued to originate private student loans after they privatized. In 2010, Sallie Mae acquired all Federal student loans owned by Citigroup’s Student Loan Corporation. Once again, Sallie Mae was servicing both Federal and private student loans. In 2014, Sallie Mae announced it would be splitting the company into SLM Corporation and Navient Corporation. SLM Corp. would be act as a consumer bank, not only to manage those private student loans originated before the split (see SLM Student Loan Trusts), but also offer traditional banking services like credit cards. Navient Corp. would be the primary originator for both their Federal and private student loans.
Today, Navient’s operations include loan servicing of both Federal and private student loans. Navient also has a large collections company named Pioneer Credit Recovery, Inc. that it uses to collect on delinquent student loan debt. They also operate under the company named Navient Solutions, Inc.
Their headquarters are located in Wilmington, Delaware. Its address is 123 Justison Street, Wilmington, DE 19801. They also have multiples offices in Wilkes-Barre, Pennsylvania, and Atlanta, Georgia. They can be reached at 888-272-5543, 877-713-3833, 317-570-7397, 800-722-1300, 888-272-4665.
Navient is not accredited with the Better Business Bureau (BBB), although they do have an A+ better business rating with the bureau. Navient has closed 760 complaints against them with the bureau over the last 12 months and 1,998 complaints in the last 3 years. Additionally, Navient has had 6,769 complaints brought against them with the Federal Consumer Financial Protection Bureau (CFPB). Sallie Mae has had 719 complaints brought against them with the CFPB.
Cases Brought Against Navient / Sallie Mae*
In Davenport v. Sallie Mae, Inc., 2015 WL 3604820 (D.Md. 2015), a Federal action was brought against Sallie Mae, Inc. for violations for of the Fair Credit Reporting Act (FCRA). The case is currently being appealed before the United States Court of Appeals for the 4th Circuit.
In Lewis v. Navient Solutions, Inc., 2015 WL 5945959 (8th Cir. 2015), an action was brought again Navient Solutions, Inc., assessing violations of the Fair Credit Reporting Act, among other claims.
*These cases were not brought by our law office and are unrelated to our client's. These matters are being referenced strictly for general informational purposes. Contact us for further info.
