Navient helps more borrowers avoid default
WILMINGTON, Del., Sept. 27, 2018 (GLOBE NEWSWIRE) -- An analysis of the Cohort Default Rate released this week by the U.S. Department of Education shows borrowers whose federal student loans are serviced by Navient defaulted at a 35 percent lower rate than their peers whose loans are serviced by other organizations.
Nationally, the percentage of borrowers defaulting on their student loans within the first three years of entering repayment declined and now stands at 10.8 percent, representing the lowest rate since the three-year cohort default rate was first released in 2012. Borrowers whose loans are serviced by Navient defaulted at a rate of 7.5 percent.
“While serious delinquency and default rates have declined, we understand there are still borrowers who struggle to repay their federal student loans,” said Jack Remondi, president and CEO of Navient. “With our data-driven approach and consumer insights, we’re able to deliver targeted outreach to help the most at-risk borrowers – those who are new to repayment and have left school without a degree. To continue to reduce defaults, higher education experts and policymakers should help address the key issues we see in working with student loan borrowers.”
Navient services a portfolio of $294 billion federal student loans, including both Federal Family Education Loan Program and Direct Loans.
For student loan borrowers, Navient offers the following recommendations:
-- Knowyour school’s cohort default rate. If students at your school are defaulting at a higher rate than the national average, be aware so you can take extra steps to avoid challenges. -- Avoid forbearance. Use forbearance only as a last resort. Income-driven repayment is usually a better choice if you’re facing a longer-term mismatch between your income and your federal student loan payments. -- Reach out to your servicer. A federal student loan is reported in default once no payments have been made for nine to 12 months. If you’re experiencing financial difficulty, contact your servicer sooner than later.
About NavientNavient (Nasdaq: NAVI) is a leading provider of asset management and business processing solutions for education, healthcare and government clients at the federal, state and local levels. The company helps its clients and millions of Americans achieve financial success through services and support. Headquartered in Wilmington, Delaware, Navient also employs team members in western New York, northeastern Pennsylvania, Indiana, Tennessee, Texas, Virginia, Wisconsin, California and other locations. Learn more at navient.com.
Media: Nikki Lavoie, 302-283-4057, email@example.com