Navient helps student loan borrowers learn about income-driven repayment plans
May 13 2015 - 5:04PM
While most recent college graduates with federal student loans
choose the 10-year standard repayment plan, an increasing number of
borrowers are turning to income-driven repayment options that allow
their monthly payments to be set based on their income.
Navient today introduced a new interactive module to help
borrowers understand these repayment plans. The module provides an
overview of plans, benefits, costs and eligibility. Here are a few
examples of information provided in the module:
- IDR uses your income, debt and family size to determine a
manageable monthly payment.
- Depending on your circumstances and the IDR plan available to
you, your payment may be as low as $0.
- Since your income is subject to change, IDR plans must be
recertified annually.
- IDR provides more time to repay the loan. Typically, the loan
term for IDR plans – or the amount of time you have to repay the
loan – is more than 10 years and less than 25 years. But it is
important to remember that the longer it takes to repay a loan, the
more interest accrues on the loan, which also has to be paid
back.
The module also includes four individual scenarios, helping
borrowers understand the options available to people in situations
that may be similar to their own.
"For many college graduates, making student loan payments is an
important part of managing their finances," said Patricia Nash
Christel, vice president, Navient. "Borrowers should explore the
options available to them – including plans that vary depending on
income – and make an informed choice about how they want to repay
their loans based on their individual financial needs. At Navient,
we're committed to promoting awareness and understanding of these
programs."
Part of the Path to Success series, the new module is free of
charge and available to the public. Path to Success features a
series of 10-minute learning modules to help individuals develop
the skills needed to make sound financial decisions. Other topics
include student loan payment options, saving and investing,
creating an effective budget, and credit scores. The programs are
self paced and contain knowledge checks that allow users to measure
what they have learned.
For a short preview of Path to Success, visit Navient's YouTube
channel. Anyone can also visit www.navient.com/path for the full
series, including the new IDR module.
Connect with @Navient
on Facebook, Twitter and LinkedIn.
About Navient
As the nation's leading loan management, servicing and asset
recovery company, Navient (Nasdaq:NAVI) helps customers navigate
the path to financial success. Servicing more than $300 billion in
student loans, the company supports the educational and economic
achievements of more than 12 million Americans. A growing number of
government and higher education clients rely on Navient for proven
solutions to meet their financial goals. Learn more at navient.com.
Navient began trading on Nasdaq as an independent company on May 1,
2014.
CONTACT: Media: Nikki Lavoie, 302-283-4057, nikki.lavoie@navient.com
Customers: 888-272-5543
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