Navient Student Loan Forgiveness: Navient has consistently been ranked as one of the most despised servicers for student loans. There are also several ongoing Navient lawsuits that claim to have actually entered the criminal territory of the servant’s mistakes.
It is important to understand that there are no exclusive Navient student loan forgiveness programs, regardless of how these lawsuits are faced.
There are also several ongoing Navient lawsuits that claim to have actually entered the criminal territory of the servant’s mistakes. It is important to understand that there are no exclusive Navient student loan forgiveness programs, regardless of how these lawsuits are faced.
There are many general loan forgiveness programs for students, however, for which Navient borrowers may apply. Let’s look at today’s Navient loan forgiveness options.
What kind of Navient student loans do you have?
Navient and Sallie Mae are now completely separate companies, even though they were once the same agency. Redemption for Navient loans is not the same as redemption of loans from Sallie Mae.
Nevertheless, Navient offers a mix of private and federal student loans due to their association with Sallie Mae. You’re going to want to know what kind of stuff you have. It makes a big difference in terms of which programs you are qualifying for forgiveness.
If you have federal student loans, those loans will be eligible for all of the federal forgiveness programs. But private student loans won’t be. Private student loans may be eligible for forgiveness through state or profession-specific student loan forgiveness programs.
Navient student loan forgiveness for federal loans
If you have federal Navient student loans, here are three forgiveness options that are available to you.
1. Income-driven repayment forgiveness
Currently, the Department of Education offers four income-driven repayment (IDR) plans.
Pay As You Earn (PAYE) Plan
Revised Pay As You Earn (REPAYE) Plan
Income-Based Repayment (IBR) Plan
Income-Contingent Repayment (ICR) Plan
With each of these arrangements, once you reach the end of your repayment schedule, you will be prepared for Navient student loan forgiveness. You will be liable for redemption after 20 to 25 years, depending on the program you select, but you will want to remain vigilant and ensure that your transactions are handled properly. And every year you’re going to have to recertify your income and family size.
Because note, if you seek compensation, you’re going to owe income tax on the amount you’re forgiven. So if IDR redemption is your plan, make sure you save a little money on the tax bill that comes down the road every year.
2. Public Service Loan Forgiveness
If you’re working in the public sector, such as government or a non-profit agency, Public Service Loan Forgiveness (PSLF) may be your best option to forgive student loans. For PSLF, in as little as 10 years (or 120 qualifying payments) you will receive tax-free student loan forgiveness.
It should be remembered that FedLoan Servicing is the PSLF program’s exclusive service provider, meaning that only if FedLoan is your service provider will you apply for this system. But don’t worry if you’re right now with Navient.
You can apply for PSLF on the StudentAid.gov website. If you’re accepted to the program, Navient will automatically transfer your student loans to FedLoan Servicing.
The Department of Education says that it will notify you if you’ve been accepted to the program. But if it’s taking longer than you think is reasonable to get an answer, you can call FedLoan Servicing at 1-855-265-4038 to ask for a status update.
3. Teacher Loan Forgiveness
Teachers can use the Teacher Loan Forgiveness Program to earn up to $17,500 in Navient student loan forgiveness. But you must be deemed a “highly qualified” educator to apply. And in a low-income school or social support organization, you will need to teach five consecutive years.
It is important to point out that it is not mixing well with PSLF and Teacher Loan Forgiveness. You may be better off sticking to PSLF in many situations.
You may want to consider refinancing your Navient student loans if you don’t qualify for any of the above programs — or even if you do. You can kill two birds with one stone by refinancing.
It’s your chance to kick Navient to the curb, and you can also save money on interest in student loans. And, while refinancing is not redemption of student loans, it could be your best strategy for student loans from Navient.
But how do you know when the right move is to refinance? Please ask yourself three questions here:
1. Will you be eligible for federal forgiveness soon?
If you’re just starting repayment, refinancing could save you a lot of money over the life of your loans.
But if you have made three years of payments to Teacher Loan Forgiveness or five years of payments to PSLF, that will completely change the discussion. If you are already well on your way through a federal program to receive Navient student loan forgiveness, you can stop refinancing.
If you choose to stay with Navient, make sure that you are on the right repayment plan and the right way to file your taxes. You should also be careful to ensure that your loans are handled correctly by Navient. If your loans with Navient are in default, a student loan lawyer may need to be contacted.
2. What is your financial situation?
You are ineligible for IDR incentives and federal forbearance or deferment while refinancing student loans. In other words, with private loans, you will have less flexibility in payment. Rain or shine, the bills are just going to keep coming.
So you’ve got an emergency fund in place? If not, before you refinance your student loans, you may want to reach that goal.
There are two other financial factors to consider: your debt-to-income ratio and your credit score. If you have a credit score of more than 650 and owe less than 1.5 times your earnings, you might be a top refinancing candidate. If you don’t, you might want to wait.
3. Have you achieved career stability?
Refinancing could be a great move if you only expect your income to rise over the next few years. When you make more money, IDR plans will slowly become less helpful. And, for 20 years or more, you’re going to be shackled to your student loans and pay a lot more in interest.
But you may want to stick with federal student loans if your job situation is volatile. It can be a comfort to know that IDR is available if you were to need it. And you can always refinance later if your job situation stabilizes.
Save money and hassle
Wondering if it’s worth refinancing? Take this into account. Let’s say you had a 6.5 percent interest rate for $100,000 in student loans. Let’s also claim you have chosen to remain on the 10-year default repayment plan. In that scenario, over the term of your loans, you will pay $36,257 in interest.
But your interest cost would drop to $18,663 by refinancing at 3.5 percent. That’s more than $17,500 in savings. Plus, you and your problems would be free of Navient.