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"[Navient pointed out]...more than 40 percent of loan balances it services for the Education Department are enrolled in income-based repayment plans." Over 40%

by Arubis 10y ago

"[Navient pointed out]...more than 40 percent of loan balances it services for the Education Department are enrolled in income-based repayment plans." Over 40% of people with US Government-sponsored student loans--which were presumably taken out in order to advance the career prospects of the borrower--are not being paid sufficiently to repay their loans on the basis of their original issuance, _and this is presented as a good thing_. Unbelievable.

wyldfire 10y ago
I don't think you understood the article. Navient is a debt collector. They were sold loans owned by the US Dept of Ed (or hired by the department of ed maybe?) "more than 40 percent of loan balances it services...." means that out of the loans that the US Dept of Ed decided it can't collect on anymore -- many of those are using the option that would benefit them the most. The article talks about Navient saying one thing: "we want to help all of the borrowers because they are actually not just borrowers but citizen/constituents"; while doing another: "thanks for calling Navient, having trouble paying your loan? Just hit the loan-pause-button and we will pause your loan for 24 months. No, we will not tell you this but you could have asked for the 'smaller loan payments because you're not earning much' button'."
- LyndsySimon 10y ago
  > out of the loans that the US Dept of Ed decided it can't collect on anymore Nope - Navient isn't a collector, it's a servicing company.
  - lr4444lr 10y ago
    It's both[0]. But what it's not doing is duping aspiring college graduates to take out these loans in the first place. As detestable as their predation on the delinquent may be, they're not pumping up the loan bubble. https://www.navient.com/about/who-we-are/services/ https://www.navient.com/about/who-we-are/services/
    - esrauch 10y ago
      On the other hand, my loan servicer was changed to some unbelievably poorly managed servicing company years after I had graduated (not one of the big 3-4 companies): think login without ssl, mailing me paper with my SSN printed on it, couldn't get a person on the phone after waiting on hold for hours. I never choose to make any financial deal with that company and I never would have given any choice. The net result was just that I made it my absolute top priority to pay off the rest of my loans held by them (which was also a very frustrating process, with several rounds of extra interest and surprise tiny fees and more inability to get someone on the phone) but other people wouldn't have that luxury.
      - selimthegrim 10y ago
        This sounds like ACS
- AdmiralAsshat 10y ago
  >Navient is a debt collector. They were sold loans owned by the US Dept of Ed (or hired by the department of ed maybe?) Navient had a federal contract with the Dept of Ed and the Dept of Treasury to collect on their behalf. Full disclosure: Navient is a client of my employer and I work with them directly.

by Arubis 10y ago

wyldfire 10y ago

I don't think you understood the article. Navient is a debt collector. They were sold loans owned by the US Dept of Ed (or hired by the department of ed maybe?) "more than 40 percent of loan balances it services...." means that out of the loans that the US Dept of Ed decided it can't collect on anymore -- many of those are using the option that would benefit them the most. The article talks about Navient saying one thing: "we want to help all of the borrowers because they are actually not just borrowers but citizen/constituents"; while doing another: "thanks for calling Navient, having trouble paying your loan? Just hit the loan-pause-button and we will pause your loan for 24 months. No, we will not tell you this but you could have asked for the 'smaller loan payments because you're not earning much' button'."

LyndsySimon 10y ago
> out of the loans that the US Dept of Ed decided it can't collect on anymore Nope - Navient isn't a collector, it's a servicing company.
- lr4444lr 10y ago
  It's both[0]. But what it's not doing is duping aspiring college graduates to take out these loans in the first place. As detestable as their predation on the delinquent may be, they're not pumping up the loan bubble. https://www.navient.com/about/who-we-are/services/ https://www.navient.com/about/who-we-are/services/
  - esrauch 10y ago
    On the other hand, my loan servicer was changed to some unbelievably poorly managed servicing company years after I had graduated (not one of the big 3-4 companies): think login without ssl, mailing me paper with my SSN printed on it, couldn't get a person on the phone after waiting on hold for hours. I never choose to make any financial deal with that company and I never would have given any choice. The net result was just that I made it my absolute top priority to pay off the rest of my loans held by them (which was also a very frustrating process, with several rounds of extra interest and surprise tiny fees and more inability to get someone on the phone) but other people wouldn't have that luxury.
    - selimthegrim 10y ago
      This sounds like ACS
AdmiralAsshat 10y ago
>Navient is a debt collector. They were sold loans owned by the US Dept of Ed (or hired by the department of ed maybe?) Navient had a federal contract with the Dept of Ed and the Dept of Treasury to collect on their behalf. Full disclosure: Navient is a client of my employer and I work with them directly.