Navient statement on positive trends in the national student loan Cohort Default Rate
September 30 2015 - 3:07PM
Navient, the nation's leading loan management, asset recovery and
servicing company, released a statement on today's federal student
loan Cohort Default Rate.
Borrowers in the cohort period whose loans were serviced by
Navient were 38 percent less likely to default compared to other
borrowers.
"At a time when concerns about the cost of college and level of
student debt are high, we agree that servicing can make a
meaningful difference to improve borrower outcomes and we're proud
of the positive difference we continue to make for borrowers," said
Jack Remondi, president and CEO, Navient. "We're committed to
helping our student loan customers successfully repay their loans
and avoid the long-term consequences of default. Our leadership on
this critical measure is a direct result of our data-driven
approach to servicing: we identify those who are struggling, and
then reach out with information to help them understand the options
available and choose the plan that matches their needs--ultimately
helping them stay on track to succeed financially.
"Throughout the repayment process, contact is key. When we can
make contact with a past-due federal loan borrower, nine times out
of 10, we can help him or her avoid default. Conversely, 90 percent
of those who default on their federal loans have not responded to
our outreach over the year it takes to reach default. We encourage
individuals who need assistance with their loans to respond to
their servicer's outreach so we can explore the multiple repayment
relief options available.
"We promote awareness of federal repayment plan options through
more than 170 million communications annually, including mail,
email, phone calls, videos, and text messages. In fact, according
to the FSA Data Center, 32 percent of Direct Loan volume and 18
percent of borrowers serviced by Navient are enrolled in plans tied
to income.
"The complexity and number of repayment options can be
overwhelming to borrowers, however. As policymakers look for ways
to enhance the federal loan program, a focus on streamlining
multiple, sound-alike options into easier-to-understand, actionable
choices would support borrower success."
The 2012 Cohort Default Rate analyzes data from the group of
borrowers who entered repayment between Oct. 1, 2011, and Sept. 30,
2012, and who defaulted in a three-year window by fall of 2014.
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.
CONTACT: Media: Patricia Nash Christel, 302-283-4076, patricia.christel@navient.com
Investors: Joe Fisher, 302-283-4075, joe.fisher@navient.com
Customers: 888-272-5543
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