Federal student loan borrowers serviced by Navient are 37% less likely to default
Borrowers whose loans are serviced by
The Cohort Default Rate measures the percentage of federal student loan borrowers who defaulted on their loans within three years of entering repayment.
“Navient has invested in research, technology, and employee training to help borrowers avoid the negative consequences of default, and we are proud that borrowers whose loans we service are consistently and substantially less likely to default,” said
Navientemphasizes borrower engagement, which is key to preventing default. When a team member connects with a past-due federal borrower 9 times out of 10 the borrower avoids default. Navienthas helped drive a significant increase in income-driven repayment plan enrollment. According to Department of Educationdata, the share of borrowers enrolled in income-driven repayment plans has nearly tripled over the past four years (from 10 percent in June 2013to 27 percent in June 2017). Newer Department of Educationdata shows the percentage of borrowers who are 90-plus days past due has decreased by 15 percent in three years (from 12.9 percent in June 2014to 10.9 percent in June 2017). Navientpromotes awareness of repayment plan options through more than 154 million communications annually, including mail, email, phone calls, videos, and text messages. Navientcontinues to advocate for streamlining IDR enrollment, including recommending real-time phone enrollment and multi-year enrollment, so borrowers could more easily enroll and wouldn’t have to go through the process of recertifying their income every year.
Source: Navient Corporation