Navient CEO Presents Before Republican Policy Committee
April 12 2016 - 2:38PM
Today, Navient CEO Jack Remondi presented at a hearing held by the
Republican Policy Committee Millennial Task Force on College
Completion, Flexibility, and Affordability for an Emerging
Generation. As the nation's largest student loan servicer with more
than 40 years of experience working in the federal student loan
program, Navient is positioned to provide unique insights and
solutions to help address concerns about rising student debt in the
United States.
In his remarks, Remondi focused on the importance of college
completion, and made four specific recommendations to improve
borrower success and the student loan program.
“While those who complete a degree tend to see financial
benefits regardless of whether they borrowed, a growing body of
research shows students who borrow for college but don’t complete
pay a significant financial penalty. They have the debt with none
of the economic benefits of a degree,” said Remondi. “This
underscores the importance of focusing on college completion, both
before and after an individual borrows. At Navient, we’re committed
to working with Congress to enhance the success of individual
student borrowers and ensure families have the tools necessary to
make the best decisions to help improve student loan success.”
Remondi detailed the following recommendations in his
testimony:
- Provide more front-end resources to improve decision
making. Students and their families need tools to
understand how much they’ll need to borrow to earn the degree—not
simply the current semester—and to assess the likely economic
benefits of a chosen field. This kind of information will help
students and parents make a more informed assessment about what
they can afford.
- Simplify repayment. Currently, the government
offers 16 repayment plans, eight forgiveness programs, and 32
deferment and forbearance options—each with its own nuances,
payment schedules, qualifications, and complex enrollment criteria.
They should be and can be simplified. For example, collapsing the
multiple income-driven repayment options into one plan with the
most appropriate borrower-friendly terms would be a good
start.
- Help borrowers pay off early. In the rush to
help student borrowers, too many have trumpeted lower payments over
longer periods as the universal solution despite the higher
interest costs many borrowers will pay. We need programs that help
struggling borrowers through short-term and long-term challenges,
but anyone enrolling should understand the trade-offs to be able to
make the right choice for their financial circumstances.
- Encourage borrowers to engage with their loan
servicers. Default is avoidable, but borrower contact is
key. As a servicer, we’ve found that nine times out of 10, when we
reach struggling federal loan borrowers we are able to help them
avoid default by getting them into a repayment plan that works for
them. Contact works; let’s encourage it.
Remondi's full remarks can be read at Navient.com/views.
Connect with @Navient on Facebook, Twitter and LinkedIn.
About NavientAs 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 public and private
sector 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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