Is my Navient loan a federal loan?
Navient was one of the largest federal student loan servicers prior to ending its contract after Dec. 31, 2021. Its loans were transferred to Aidvantage. Navient still services some FFELP loans and private student loans from various lenders.
If you're wondering how to tell if your student loans are federal, you can log into the Federal Student Aid website using your FSA ID to see a list of all federal student loans in your name. On your account dashboard, you can find “My Loan Servicers” or check the National Student Loan Program System.
Any outstanding loan balance will be forgiven after 25 years of qualifying repayment. Annual recertification is required.
Navient's student loan portfolio is split between private student loans and commercially held loans from the Federal Family Education Loan Program (FFELP). The company holds $38 billion worth of FFELP loans and $17 billion worth of private education loans, a Navient representative said.
All borrowers with loans held by ED (Direct Loans and federally held FFELP Loans) who have accumulated time in repayment for at least 20 or 25 years will see automatic forgiveness of their loans.
Borrowers who have reached 20 or 25 years (240 or 300 months) worth of eligible payments for IDR forgiveness will see their loans forgiven as they reach these milestones. ED will continue to discharge loans as borrowers reach the required number of months for forgiveness.
A federal student loan is money borrowed from the federal government to help pay for your education, that must be repaid with interest.
Navient is a private student loan servicer. They no longer service federal loans, and borrowers cannot access federal programs through them. If you have private loans with Navient, you may be able to take advantage of the benefits of refinancing your student loans to improve your interest rate or loan terms.
The most straightforward method to get rid of your student loan is to repay it in full. If you have the financial resources, you can choose to pay off your loan in a lump sum. This will eliminate your debt and save you from accruing further interest.
There are three ways to get rid of Navient private student loans without paying the balance in full: Qualify for debt cancellation, negotiate a settlement, or file student loan bankruptcy.
What happened to my Navient student loans?
Once the largest servicer of student loans owned by the U.S. Department of Education, Navient no longer serves as one of the government's student loan servicing contractors, transferring all student loans it once serviced to Maximus (also known as Aidvantage) in late 2021.
All Sallie Mae loans taken out since 2014 are private. The best way to determine if you have federal or private student loans is to check studentaid.gov. If you need to borrow money for college, exhaust federal student loans before taking out a private student loan.
Navient has already exited the federal student loan servicing business. In October 2021, the company transferred all of its Department of Education loan accounts to Maximus, another loan servicing company.
The Federal Family Education Loan (FFEL) Program was a program that worked with private lenders to provide education loans guaranteed by the federal government. The FFEL Program ended in 2010. All loans are now made through the William D. Ford Federal Direct Loan Program.
You're not eligible for federal student loan forgiveness programs if you have private loans, but there are other strategies for managing private loan debt.
PSLF eligibility is based on your employer's status rather than your position. You can qualify for loan forgiveness after working full-time for at least 10 years while making 120 qualifying payments.
Loan Forgiveness and CARES Act Extension
These programs are only applicable to borrowers with loans held by the Department of Education (ED). Navient no longer services these loans, so any loans you have with us are not eligible. We encourage you to visit StudentAid.gov for the latest information.
Navient is no longer servicing federal loans owned by the U.S. Department of Education. These loans were transferred to a new servicer, Aidvantage, in January 2022.
Why are my Navient loans not paused? Your Navient loans aren't eligible for the federal student loan payment pause and 0% interest rate period because they are privately-held federal student loans or private student loans, neither of which are held by the U.S. Department of Education.
For federal student loans, the top of a student loan bill will have the name of your student loan servicer and the name of your federal student loan program. For private student loan bills, you'll see the name of your private lender on the bill instead.
What are the 4 types of federal student loans?
- Direct subsidized loans.
- Direct unsubsidized loans.
- Direct PLUS loans.
- Direct consolidation loans.
Direct Subsidized Loans made to eligible undergraduate students who demonstrate financial need to help cover the costs of higher education at a college or career school. Direct Unsubsidized Loans made to eligible undergraduate, graduate, and professional students, but eligibility is not based upon financial need.
Millions of borrowers had their loans transferred. At the end of 2021, Navient, PHEAA (also known as FedLoan Servicing) and Granite State stopped managing federal student loan products. During the transition, which was completed at the start of 2023, the loans were transferred to a new servicer.
Navient is a federal student loan servicer that manages existing student loan accounts. Meanwhile, Sallie Mae continues to offer private student loans and other financial products to consumers.
Navient ended its contract with the federal government in 2021, and now only services private student loans.
References
- https://lendedu.com/blog/how-to-get-rid-of-navient-student-loans/
- https://navient.com/loan-servicing/federal-student-loans/
- https://studentaid.gov/help-center/answers/article/what-is-federal-student-loan
- https://finance.yahoo.com/personal-finance/do-i-qualify-for-student-loan-forgiveness-194501496.html
- https://www.consumerfinance.gov/paying-for-college/student-loan-forgiveness/
- https://protectborrowers.org/navient-to-terminate-student-loan-servicing-business-following-high-profile-scandals/
- https://www.bankrate.com/loans/student-loans/are-student-loans-federal/
- https://www.bankrate.com/loans/student-loans/navient-exit-student-loan-servicing/
- https://www.mass.gov/info-details/frequently-asked-questions-about-the-navient-settlement
- https://www.bankrate.com/loans/student-loans/navient-overview/
- https://www.nerdwallet.com/article/loans/student-loans/student-loan-forgiveness
- https://www.tateesq.com/learn/how-to-get-rid-of-navient-private-student-loans
- https://www.nerdwallet.com/article/loans/student-loans/is-sallie-mae-federal-loan
- https://www.tateesq.com/learn/why-is-navient-still-charging-interest
- https://www.forbes.com/advisor/student-loans/navient-transfers-servicing-of-student-loan-portfolio/
- https://www.aessuccess.org/manage/ffel-program-loans/IDR-waiver.shtml
- https://www.bankrate.com/loans/student-loans/sallie-mae-federal-or-private/
- https://www.nerdwallet.com/article/loans/student-loans/how-to-know-if-student-loans-are-federal
- https://www.investopedia.com/navient-to-cancel-usd1-7-billion-in-private-student-loan-debt-5216086
- https://navient.com/loan-servicing/debt-relief-updates/
- https://studentaid.gov/help-center/answers/article/ffel-program
- https://www.usnews.com/education/best-colleges/paying-for-college/articles/understanding-federal-student-loan-types
- https://studentaid.gov/help-center/answers/article/what-types-of-federal-student-loans-available
- https://www.nerdwallet.com/article/loans/student-loans/navient-student-loans
