A Response From Navient
Plus a fact sheet with additional context.
Yesterday, I summarized a handful of news stories (and government documents) relating to Secretary of Education Betsy DeVos and student loan servicing company Navient.
I heard back from a Navient representative who wanted to explain how Navient works with student loan borrowers to create payment solutions:
When federal student loan borrowers find their payment is not affordable, Navient representatives discuss the various options for a more affordable payment, such as the many income-driven repayment options. However, it is up to the borrower to decide how he or she wants to proceed. Student loan servicers do not make decisions for a borrower or advise them what is in their best interest — only individual borrowers can determine that for themselves based on their assessment about short- and long- term options, trade-offs and expectations. Servicers of student loans, auto loans, mortgages and even investment center representatives do not serve as “fiduciary” agents for the customers they support.
The representative provided a Navient fact sheet that includes additional context and details about Navient’s services:
Allegation: Navient didn’t do enough to get borrowers into income-driven repayment (IDR) plans and steered borrowers into forbearance instead.
Fact: Navient is a leader in enrolling eligible borrowers into income-driven repayment programs. We promote repayment options, including IDR, in 170 million communications annually.
Here’s the full fact sheet for your perusal:
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