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Regulators, Consumers Target Student Debt Servicer Navient

For example, Navient spokeswoman Patricia Nash Christel said the company’s analysis shows most of the complaints lodged against it through the CFPB’s portal are related to loan policies, including disagreements about loan terms set at the time they were made, not servicing errors.

The more than 1,400 complaints per month Navient saw from November to January represent a tiny fraction of the 12 million customers whose loans it services. The company says it has 750 million interactions a year with borrowers, including through letters and phone calls, and processes more than 90 million payments annually.

In response to complaints about robocalls, Navient told the FCC in June that student loan servicers “are different from telemarketers offering a free cruise.”

“Calls and text messages from student loan servicers are proven methods that help millions of Americans,” Navient said in a 64-page letter to the FCC. “Live contact with borrowers is key to helping them navigate the multitude of options and the complexity of the repayment system.”

Nine times out of 10, federal student loan borrowers who default haven’t responded to Navient’s outreach or contact in the preceding year of missed payments, Christel said.

Navient has said it tried “telephone contact” in 2015 with 1.2 million borrowers who weren’t enrolled in income-driven repayment plans, but they “never responded to our outreach.” The company said some borrowers choose forbearance even when offered enrollment in alternative repayment plans.

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