Navient Student Loan Forgiveness: What Borrowers Need to Know

Navient student loan forgiveness is a commonly misunderstood term, leading many borrowers to believe that Navient offers forgiveness programs. In reality, Navient is a student loan servicer, not a lender or a forgiveness provider. Only the federal government offers federal student loan forgiveness programs.

What Is Navient’s Role in Student Loan Forgiveness?

Navient is responsible for handling the administrative aspects of student loans, such as billing, collections, and customer service. Although they manage these services, they do not have the authority to forgive federal student loans.

Allegations Against Navient in Student Loan Mismanagement

In 2017, the Consumer Financial Protection Bureau (CFPB) filed a lawsuit accusing Navient of:

  • Misapplying loan payments
  • Providing incorrect information to borrowers
  • Failing to respond to complaints effectively

In a similar move, California Attorney General Xavier Becerra filed a lawsuit against Navient for allegedly steering borrowers into forbearance programs when better alternatives—like income-driven repayment plans—were available.

Forbearance vs. Income-Based Repayment Programs

Forbearance pauses your student loan payments but allows interest to continue accruing, leading to increased total loan debt. In contrast, income-based repayment plans calculate payments based on your income and family size. These plans:

  • Lower monthly payments
  • Help you manage other financial obligations
  • May lead to eventual student loan forgiveness

Borrowers placed into forbearance could miss out on these long-term benefits.

Navient Lawsuit: Key Findings and Student Complaints

In 2018, the CFPB received nearly 10,000 complaints about federal student loans. A report by LendEDU revealed that Navient received the most complaints—2,239 in total. This raised serious concerns about their servicing practices and led to widespread borrower dissatisfaction.

Fig. 1. Brown, Mike. “2018 Federal Complaints by Volume.” LendEDU, 2019, infogram.com/2018-federal-complaints-by-volume-1hkv2nynvn3n6x3.

What Can Borrowers Do About Their Student Loans?

If you’re concerned about your loans or want to explore student loan forgiveness options, here’s what you should do:

  • Review your repayment options through the federal government’s loan website
  • Avoid relying solely on your loan servicer for guidance
  • Explore income-driven repayment plans, Public Service Loan Forgiveness (PSLF), or teacher loan forgiveness programs
  • Stay updated on lawsuits and reforms impacting servicers like Navient

Get Help Navigating Student Loan Forgiveness Options

Understanding your loan terms and available programs is essential. If you have questions about student loan forgiveness, repayment strategies, or legal options, feel free to contact us for a free consultation.

Sources

Brown, Mike. Report: 2018’s CFPB Student Loan Complaints. LendEDU.

Friedman, Zach. (2018, July 9). What This Navient Lawsuit Means For Your Student Loans. Forbes.

Ribe, Matt. (2018, September 5). What Borrowers Need to Know About Navient Lawsuits. U.S. News.