Navient celebrates a year of customer success
January 06 2017 - 11:15AM
Millions of people resolve to improve their financial health at the
beginning of each year. Navient, the nation’s largest student loan
servicer, celebrates its customers who started the new year on a
path to financial success.
In 2016, more than 500,000 borrowers paid off
their student loans. Elesea Russo of Fort Sumner, N.M. was one of
them. Her repayment strategy included sticking to a budget, making
on-time payments and paying extra whenever possible.
“I started out slowly,” she said. “At first my husband and I
were just managing to pay each month's minimum required payment. We
targeted the smallest student loan and paid it off as quickly as
possible, moving to the next smallest and so on until we paid off
all of our combined student loans.”
Navient offers free tools and resources to help borrowers
improve their financial health. In 2016, Navient launched an
additional 16 free resources online. They include
a repayment calculator, newly added interactive videos, webcasts
and a series on personal finance.
Automatic payment is the easiest way to ensure regular, on-time
payments, and may even qualify for an interest rate reduction. A
record number of 766,000 loan customers enrolled
in autopay in 2016, bringing the total rate to nearly one out of
four borrowers in repayment.
Connie Haag of Columbus, Ohio credits autopay for her repayment
success. “I would share with anyone paying on their student loans
to sign up for auto payment,” she said. “This way you cannot
forget! It’s the best strategy.”
Federal loan borrowers may choose the 10-year standard repayment
plan or select from several other repayment plans, including
income-driven repayment options. As of yearend 2016, about one in
four borrowers and 43 percent of dollars serviced
by Navient are enrolled in IDR programs (excluding loan types not
eligible for IDR).
Neil Scheible of Buffalo, N.Y. describes his experience with the
plan.
“I wanted to pay off these loans as fast as possible to save
money in the long run, but that wasn’t always feasible,” said
Scheible. “Once I began my career and had rent, bills, car
payments, and student loan payments to take care of, I needed to
find a repayment plan that allowed me to both pay off my student
debt and have a life worth living. The answer was an income-driven
repayment plan. I am now able to afford all of my personal expenses
as well as pay off my student debt. As I begin to make more money
throughout my career, my monthly payment will adjust.”
More young adults reported better financial health in 2016
compared to the previous year, according to Money Under 35, an
annual study conducted by Navient and the global research firm
Ipsos. The vast majority (83%) are in “good” or “excellent”
financial health. The improvement in employment and financial
health is concentrated in those who completed their college degree.
Degree holders are more likely to be employed, earn higher wages,
have a higher credit score, and are more likely to buy a home, than
those without a degree.
“On behalf of our 7,000 team members at Navient, I congratulate
all of our customers who successfully paid off their student loans
and the many more who are making steady progress,” said Patricia
Nash Christel, vice president, Navient. “It’s our commitment to
continue to make it easier than ever to achieve this milestone in
your financial life.”
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: Nikki Lavoie, 302-283-4057, nikki.lavoie@navient.com
Investors: Joe Fisher, 302-283-4075, joe.fisher@navient.com
Customers: 888-272-5543
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