**Navient have been staying in the dark about any negative reports about them seems like they are combing the internet to erase the news from search engines**
its been a while... but ive been having some sucess using navients own money to pay for my loans.
So in the past 8 months i have been working on a way to pay off my student loans by using my 401k investmemts. The main why reason i decided to use my 401k because i dont have a lot of money up front. also the best part its absolutley tax free on what ever money you gain but if you lose money cant clam the loss on your taxes but it was the risk i was willing to take to ease the pain of paying for the loans
its a great way to pay for it but its not for everyone. if you work for a company that provides you with a 401k you have to check to see if you can select what stock you invest in.
you will have to make sure that you can choose what stocks you want to invest in. find out what the restrictions are for buying and trading stocks if you have full range stock options it could be u.s. or foreign.
When choosing what stock option you want to invest look for a cheap stock that pays out a DIVIDEND. investing in a company that has dividends is the only way you can get money to flow out of your 401k with out penalties. you will have to pay taxes on it but its just another way to make income on the side besides your weekly check from your job. the best part is that if you are taking a loss on your investment you will still recieve that dividend no matter what.
For this experiment i invested 90% of my 401k into NAVIENT but i waited a couple of weeks because it was trending downward. when i first looked at navient it was priced at 15.37 over a week it down to 15.10. i jumped in at 15.10 and once i did that it went up to 15.60. which i ended up getting 5% increase in a week window. then i started looking into what navient pays out for there dividends. they pay out .16 a share. it might seem like its not much but its all about quanity. if you buy 500 shares you will receive 80 dolloars of navients profits.
now there is other companies that has a bigger pay off of their dividends. when i was searching for companies with a higher dividend payout i found a company that is 25.00 a share and has a dividend of 1.10. you just have to find a good balence because i which i knew about the other company i found then keeping my money in navient because as of today im taking a huge loss now because of the law suit situtation and a new cfo was elected.
this is also is a good way to grow your 401k quicker. in the first 2 months i grew my 401k by 25%. when i compared the growth of my company stock it only grew by 10%...it only really depends on what stocks you pick and how fast they grow. the other is that you have to have luck on your side because i bought some stocks and the value of the stock went down and lost money.
you also have to have the heart to realize the fact that you may loss more then gain at first. at first i was having a heart attack once i saw i was startes lossing 10 dollars but i gain that back in one day. if you start lossing dont discouraged. just have to stick it out and keep you eye on the news of the company you have investments with and just hope it goes back up. most stocks go up and down on a daily basis
so with all this being said i will be updating you guys with more info on navient. if you have any questions about investing to pay off your loans. just drop your question on my facebook page Occupy-Sallie Mae.
its a great way to pay for it but its not for everyone. if you work for a company that provides you with a 401k you have to check to see if you can select what stock you invest in.
you will have to make sure that you can choose what stocks you want to invest in. find out what the restrictions are for buying and trading stocks if you have full range stock options it could be u.s. or foreign.
When choosing what stock option you want to invest look for a cheap stock that pays out a DIVIDEND. investing in a company that has dividends is the only way you can get money to flow out of your 401k with out penalties. you will have to pay taxes on it but its just another way to make income on the side besides your weekly check from your job. the best part is that if you are taking a loss on your investment you will still recieve that dividend no matter what.
For this experiment i invested 90% of my 401k into NAVIENT but i waited a couple of weeks because it was trending downward. when i first looked at navient it was priced at 15.37 over a week it down to 15.10. i jumped in at 15.10 and once i did that it went up to 15.60. which i ended up getting 5% increase in a week window. then i started looking into what navient pays out for there dividends. they pay out .16 a share. it might seem like its not much but its all about quanity. if you buy 500 shares you will receive 80 dolloars of navients profits.
now there is other companies that has a bigger pay off of their dividends. when i was searching for companies with a higher dividend payout i found a company that is 25.00 a share and has a dividend of 1.10. you just have to find a good balence because i which i knew about the other company i found then keeping my money in navient because as of today im taking a huge loss now because of the law suit situtation and a new cfo was elected.
this is also is a good way to grow your 401k quicker. in the first 2 months i grew my 401k by 25%. when i compared the growth of my company stock it only grew by 10%...it only really depends on what stocks you pick and how fast they grow. the other is that you have to have luck on your side because i bought some stocks and the value of the stock went down and lost money.
you also have to have the heart to realize the fact that you may loss more then gain at first. at first i was having a heart attack once i saw i was startes lossing 10 dollars but i gain that back in one day. if you start lossing dont discouraged. just have to stick it out and keep you eye on the news of the company you have investments with and just hope it goes back up. most stocks go up and down on a daily basis
so with all this being said i will be updating you guys with more info on navient. if you have any questions about investing to pay off your loans. just drop your question on my facebook page Occupy-Sallie Mae.
Billionaire is taking a huge bet on Navient
To some federal and state regulators, student loan giant Navient Corp. is a company that too often mistreats borrowers and deprives them of their right to make affordable monthly payments. To Leon Cooperman, a shareholder and billionaire investor, Navient is an undervalued company that the government is beating up on for no good reason.
Student debt has emerged as a dominant policy issue, with both Democratic and Republican politicians jostling over ways to lower college costs and make student loans more affordable. More than 40 million Americans collectively owe about $1.3 trillion on their student loans -- a product of increased college enrollment, reduced higher education spending by state legislatures, and runaway tuition hikes. Washington policymakers have warned that overly indebted households may have no choice but to cut back on spending and investments, depressing the economy's growth.
It is against that backdrop that regulators and some Democratic lawmakers have begun to target student loan servicer such as Navient, which collect borrowers' monthly payments on behalf of creditors and counsel them on their repayment options. Unlike other forms of consumer debt, nearly all federal student loan borrowers are eligible to make monthly payments based on their earnings. Yet student loans have the highest delinquency rate of common household debt, according to the Federal Reserve Bank of New York.
At stake is the future of a company that Wall Street now values about 40 percent lower than it did at the start of the year. Navient faces escalating government investigations and questions over how the company is dealing with borrowers whose loans are its main money-making asset. Those loans are slowly being paid down from a government program that ended in 2010.
In a brief interview Wednesday, Cooperman, founder of the prominent hedge fund Omega Advisors, put the blame for Navient's decline squarely on government regulators. He likened the bruising treatment of Navient to politicians' bashing of mortgage giants Fannie Mae and Freddie Mac for backing home loans to borrowers during the housing boom that soured during the financial crisis and resulting recession.
"From everything I've read about what they've done, they do a good job for students," Cooperman said of Navient. "The problem is the regulators, not the company. The regulators may not be doing a good job."
Cooperman, whose firm owned about 2 percent of Navient stock as of June 30, said Navient is worth $23 per share. Navient closed Wednesday at $12.89.
Navient, formerly known as Sallie Mae, is fighting to avert a lawsuit from the Consumer Financial Protection Bureau, or CFPB, for allegedly cheating borrowers. The federal regulator told the company in August that its investigators had found evidence indicating that Navient had violated consumer protection laws.
Navient also is battling a group of state attorneys general, who have been investigating the company for alleged misdeeds for nearly two years. The company has denied wrongdoing.
Consumers have filed thousands of complaints with the CFPB against Navient. A Huffington Post analysis earlier this year found that no company had paid out more money in refunds to aggrieved borrowers with private student loans than Navient, a sign that the company is acknowledging errors.
Last year, the Department of Justice accused Navient and Sallie Mae of intentionally cheating active-duty troops on their federal and private student loans by overcharging them in violation of federal law for nearly a decade. The Federal Deposit Insurance Corp. alleged the company processed borrowers’ monthly student loan payments in a way designed to maximize late fees.
Sallie Mae and Navient neither admitted nor denied wrongdoing, though Navient's chief executive, Jack Remondi, apologized to troops for what he described as "processing errors."
But to Cooperman, whatever misdeeds Navient has allegedly committed are outweighed by the "social good" of the company's operations that inevitably help students afford higher education.
His view is shared by some at the Department of Education, which earlier this year cleared Navient of wrongdoing in connection with its servicing of troops' federal student loans. The department also has increased the number of accounts it has sent Navient under its lucrative servicing contract, and jacked up its pay as well, government records and Navient securities filings show.
But regulators' treatment of Navient is similar to "the government crapping all over Fannie and Freddie," Cooperman said. "The government wanted Fannie and Freddie to extend all these loans to people so they could own homes."
But the government officials who pushed Fannie Mae and Freddie Mac to back ever-riskier loans were never held accountable, Cooperman said. Instead, government officials beat up on Fannie and Freddie executives.
"The government doesn't seem to appreciate them," Cooperman said of Navient. "Maybe we should just go home, give the keys to the government, and liquidate the company."
During Navient's quarterly earnings call on Wednesday, Cooperman suggested as much to Navient executives. With Navient shares trading for so much less than Cooperman says they're worth, he asked company executives whether the board of directors had considered liquidating the company to return money to investors so they could "invest in companies that are more appreciated by shareholders or the government."
Cooperman's firm has pared back its holdings of Navient stock, from 9.8 million shares as of Sept. 30 of last year to 7.7 million shares as of June 30 this year, filings with the Securities and Exchange Commission show.
Cooperman told Navient executives that his question was more philosophical in nature, but he made his point clear: The company should be doing everything it can to buy back its shares in order to drive up their value.
It's a common lament shared by investors who own stock in companies they believe are worth much more than financial markets value them. By buying back shares, and reducing the number of shares trading in the market, Navient could boost its share price, benefitting investors like Cooperman.
To that end, Cooperman said in the interview, Navient should be borrowing money to fund stock buybacks -- especially since the company could borrow for much less than it is paying its shareholders in the form of quarterly dividends.
"There's no better use of shareholder money than buying something back at 50 cents on the dollar, particularly in this environment where there's very few things selling at 50 cents on the dollar," Cooperman said on the earnings call.
But Navient has been doing exactly that, buying up stock over the past year in a bid to boost the company's lagging shares. Despite reducing the amount of outstanding shares by 11 percent during the year that ended June 30, Navient's stock price rose only 3 percent. Since then, it has fallen 29 percent.
"We're on sale," Cooperman said of Navient during the company's earnings call.
Student debt has emerged as a dominant policy issue, with both Democratic and Republican politicians jostling over ways to lower college costs and make student loans more affordable. More than 40 million Americans collectively owe about $1.3 trillion on their student loans -- a product of increased college enrollment, reduced higher education spending by state legislatures, and runaway tuition hikes. Washington policymakers have warned that overly indebted households may have no choice but to cut back on spending and investments, depressing the economy's growth.
It is against that backdrop that regulators and some Democratic lawmakers have begun to target student loan servicer such as Navient, which collect borrowers' monthly payments on behalf of creditors and counsel them on their repayment options. Unlike other forms of consumer debt, nearly all federal student loan borrowers are eligible to make monthly payments based on their earnings. Yet student loans have the highest delinquency rate of common household debt, according to the Federal Reserve Bank of New York.
At stake is the future of a company that Wall Street now values about 40 percent lower than it did at the start of the year. Navient faces escalating government investigations and questions over how the company is dealing with borrowers whose loans are its main money-making asset. Those loans are slowly being paid down from a government program that ended in 2010.
In a brief interview Wednesday, Cooperman, founder of the prominent hedge fund Omega Advisors, put the blame for Navient's decline squarely on government regulators. He likened the bruising treatment of Navient to politicians' bashing of mortgage giants Fannie Mae and Freddie Mac for backing home loans to borrowers during the housing boom that soured during the financial crisis and resulting recession.
"From everything I've read about what they've done, they do a good job for students," Cooperman said of Navient. "The problem is the regulators, not the company. The regulators may not be doing a good job."
Cooperman, whose firm owned about 2 percent of Navient stock as of June 30, said Navient is worth $23 per share. Navient closed Wednesday at $12.89.
Navient, formerly known as Sallie Mae, is fighting to avert a lawsuit from the Consumer Financial Protection Bureau, or CFPB, for allegedly cheating borrowers. The federal regulator told the company in August that its investigators had found evidence indicating that Navient had violated consumer protection laws.
Navient also is battling a group of state attorneys general, who have been investigating the company for alleged misdeeds for nearly two years. The company has denied wrongdoing.
Consumers have filed thousands of complaints with the CFPB against Navient. A Huffington Post analysis earlier this year found that no company had paid out more money in refunds to aggrieved borrowers with private student loans than Navient, a sign that the company is acknowledging errors.
Last year, the Department of Justice accused Navient and Sallie Mae of intentionally cheating active-duty troops on their federal and private student loans by overcharging them in violation of federal law for nearly a decade. The Federal Deposit Insurance Corp. alleged the company processed borrowers’ monthly student loan payments in a way designed to maximize late fees.
Sallie Mae and Navient neither admitted nor denied wrongdoing, though Navient's chief executive, Jack Remondi, apologized to troops for what he described as "processing errors."
But to Cooperman, whatever misdeeds Navient has allegedly committed are outweighed by the "social good" of the company's operations that inevitably help students afford higher education.
His view is shared by some at the Department of Education, which earlier this year cleared Navient of wrongdoing in connection with its servicing of troops' federal student loans. The department also has increased the number of accounts it has sent Navient under its lucrative servicing contract, and jacked up its pay as well, government records and Navient securities filings show.
But regulators' treatment of Navient is similar to "the government crapping all over Fannie and Freddie," Cooperman said. "The government wanted Fannie and Freddie to extend all these loans to people so they could own homes."
But the government officials who pushed Fannie Mae and Freddie Mac to back ever-riskier loans were never held accountable, Cooperman said. Instead, government officials beat up on Fannie and Freddie executives.
"The government doesn't seem to appreciate them," Cooperman said of Navient. "Maybe we should just go home, give the keys to the government, and liquidate the company."
During Navient's quarterly earnings call on Wednesday, Cooperman suggested as much to Navient executives. With Navient shares trading for so much less than Cooperman says they're worth, he asked company executives whether the board of directors had considered liquidating the company to return money to investors so they could "invest in companies that are more appreciated by shareholders or the government."
Cooperman's firm has pared back its holdings of Navient stock, from 9.8 million shares as of Sept. 30 of last year to 7.7 million shares as of June 30 this year, filings with the Securities and Exchange Commission show.
Cooperman told Navient executives that his question was more philosophical in nature, but he made his point clear: The company should be doing everything it can to buy back its shares in order to drive up their value.
It's a common lament shared by investors who own stock in companies they believe are worth much more than financial markets value them. By buying back shares, and reducing the number of shares trading in the market, Navient could boost its share price, benefitting investors like Cooperman.
To that end, Cooperman said in the interview, Navient should be borrowing money to fund stock buybacks -- especially since the company could borrow for much less than it is paying its shareholders in the form of quarterly dividends.
"There's no better use of shareholder money than buying something back at 50 cents on the dollar, particularly in this environment where there's very few things selling at 50 cents on the dollar," Cooperman said on the earnings call.
But Navient has been doing exactly that, buying up stock over the past year in a bid to boost the company's lagging shares. Despite reducing the amount of outstanding shares by 11 percent during the year that ended June 30, Navient's stock price rose only 3 percent. Since then, it has fallen 29 percent.
"We're on sale," Cooperman said of Navient during the company's earnings call.
Navient finally will be making payments for the compensation to the 78,000 service men and women that got screwed of their money.
NEW YORK (TheStreet) -- In a resolution to a dispute that gave a black eye to the U.S. Department of Education and one of its student loan servicer, nearly 78,000 service men and women will receive about $60 million in compensation from student loan servicer Navient (NAVI -Get Report), according to the Department of Justice. Payments will start going out this month.
Navient, the student loan servicing company that was spun off from Sallie Mae last year, will fund the payments as part of the DOJ agreement to settle charges that Navient improperly piled on excess interest to service members' student loans. The DOJ said the average settlement check will be about $771. Individual payments could range from $10 to $10,000. The DOJ did not provide details on the payment schedule.
"This compensation will provide much deserved financial relief to the nearly 78,000 men and women who were forced to pay more for their student loans than is required under the "Servicemembers Civil Relief Act," said Acting Associate Attorney General Stuart Delery. "The Department of Justice will continue using every tool at our disposal to protect the men and women who serve in the Armed Forces from unjust actions and illegal burdens."
The DOJ's investigation of Navient came out of complaints made to the Consumer Financial Protection Bureau's Office of Servicemember Affairs, headed by Holly Petraeus.
Navient denied any wrongdoing as part of the settlement. The government's allegations of overcharging weren't limited to the Newark, Delaware company's private loan portfolio. They also applied to the federal loans for which it manages payments on behalf of the Department of Education.
How much of the problem resulted from data management gaps at the Education Department or Navient was not clear -- spokespersons could not be reached for comment.
According to the DOJ, ED is now using a Department of Defense data base to identify borrowers who may be eligible for lower interest rates under the Service members Civil Relief Act, rather than require them to initiate an application process.
Navient, the student loan servicing company that was spun off from Sallie Mae last year, will fund the payments as part of the DOJ agreement to settle charges that Navient improperly piled on excess interest to service members' student loans. The DOJ said the average settlement check will be about $771. Individual payments could range from $10 to $10,000. The DOJ did not provide details on the payment schedule.
"This compensation will provide much deserved financial relief to the nearly 78,000 men and women who were forced to pay more for their student loans than is required under the "Servicemembers Civil Relief Act," said Acting Associate Attorney General Stuart Delery. "The Department of Justice will continue using every tool at our disposal to protect the men and women who serve in the Armed Forces from unjust actions and illegal burdens."
The DOJ's investigation of Navient came out of complaints made to the Consumer Financial Protection Bureau's Office of Servicemember Affairs, headed by Holly Petraeus.
Navient denied any wrongdoing as part of the settlement. The government's allegations of overcharging weren't limited to the Newark, Delaware company's private loan portfolio. They also applied to the federal loans for which it manages payments on behalf of the Department of Education.
How much of the problem resulted from data management gaps at the Education Department or Navient was not clear -- spokespersons could not be reached for comment.
According to the DOJ, ED is now using a Department of Defense data base to identify borrowers who may be eligible for lower interest rates under the Service members Civil Relief Act, rather than require them to initiate an application process.
Student Loan Time Bomb Is Ticking Louder
Two things are very clear in the Federal Reserve Bank of New York's latestQuarterly Report on Household Debt and Credit: Americans have once again started borrowing, and student loans remain a ticking time bomb.
The Fed uses data from Equifax (EFX) to identify trends in consumer credit, and its report on the fourth quarter of 2014 show that consumer credit continues to increase overall. Total balances increased $117 billion, or 1.0 percent, driven by growth across virtually every type of credit. Delinquencies and defaults continue to improve for most types of loans. Mortgages, auto loans and credit cards continue to see improving trends, with more people able to make payments on time. Credit card delinquencies are at their lowest levels since 1999.
However, one area stands out: student loans. The 90+ delinquency rate (which measures the percentage of student loan accounts that are 90 or more days past due) has been skyrocketing. An incredible 11.3 percent of students loans are now 90 days or more past due -- up from 8.7 percent in the fourth quarter of 2009. The latest figure adds up to over $100 billion of overdue student loans.
Debt That Won't Go Away
This problem will only get worse. When students borrow money, no real consideration of their ability to repay is taken into account. People majoring in computer science at world class universities can often borrow just as much as people majoring in fine arts. While I strongly believe in a liberal arts education (and benefited from one myself), we have to recognize that the earning potential is dramatically different depending upon your area of study. Many students are waking up with debt that they will never be able to service.
Even worse, most student loans cannot be eliminated in bankruptcy. Although there are opportunities for people with federal loans to take advantage of means-based repayment, students with private loans are still largely out of luck, at the whim of their servicing companies. I have met too many people earning $25,000 a year with $50,000 of private student loans that will never go away.
The Fed labelled this "an ever-increasing pool of delinquent debt." The student loan debt burden can have significant economic implications for the borrowers, the government and society. First, the U.S. taxpayer is on the hook for the $100 billion (and growing) balance of student loan debt that people cannot afford to pay back.
This Affects You, Too
Just lending students more money to fund education -- without thinking about their ability to repay -- is a recipe for disaster. I wonder if sub-prime mortgage underwriters who lost their jobs in 2008 are now working for the government. And it is definitely time for an audit of the loss recognition policies of the US federal student loan portfolio. The government thinks it is making money from student loans. If we start building adequate reserves for student loans in default, that picture may look very different.
But the true loss is to the people with the debt and the larger economy. Having defaulted student loan debt that never goes away means that an individual will have limited ability to be a productive member of society. They will buy fewer cars, save less for retirement and have more stressful lives because they will be receiving daily calls from collection agencies trying to recoup the high interest and fees associated with a decision made in their teens. America has thrived because of a reset button available to all; the next generation has been robbed of that opportunity.
There was a time when you could pay for college by working a part-time job. And there was a time when a college education made sense, regardless of the cost or the major. Unfortunately, we no longer live in that world. And we are not preparing teenagers for the biggest financial decision of their lives. With delinquency already at 11.3 percent, we can only expect it to get worse.
Some Hope
There are two small nuggets of opportunity. First, the private sector is creating opportunities for people to refinance their student loan debt. At least 19 student loan refinance options exist. If your interest rate is above 6 percent, and you have a good job and income, you may be able to find a much lower interest rate with some of these new providers. Given the size of the student loan market, it is not a surprise that a vibrant refinance market will start to develop.
In addition, recent legislation for federal student loans has created the opportunity to lower your payments with an income-driven repayment plan. If you have a private loan, your options are more limited. But you should still give your servicer a call and see what options exist.
Keep an eye on that 90+ delinquency measure. The higher it gets, the harder it will be for us to ignore this problem.
The Fed uses data from Equifax (EFX) to identify trends in consumer credit, and its report on the fourth quarter of 2014 show that consumer credit continues to increase overall. Total balances increased $117 billion, or 1.0 percent, driven by growth across virtually every type of credit. Delinquencies and defaults continue to improve for most types of loans. Mortgages, auto loans and credit cards continue to see improving trends, with more people able to make payments on time. Credit card delinquencies are at their lowest levels since 1999.
However, one area stands out: student loans. The 90+ delinquency rate (which measures the percentage of student loan accounts that are 90 or more days past due) has been skyrocketing. An incredible 11.3 percent of students loans are now 90 days or more past due -- up from 8.7 percent in the fourth quarter of 2009. The latest figure adds up to over $100 billion of overdue student loans.
Debt That Won't Go Away
This problem will only get worse. When students borrow money, no real consideration of their ability to repay is taken into account. People majoring in computer science at world class universities can often borrow just as much as people majoring in fine arts. While I strongly believe in a liberal arts education (and benefited from one myself), we have to recognize that the earning potential is dramatically different depending upon your area of study. Many students are waking up with debt that they will never be able to service.
Even worse, most student loans cannot be eliminated in bankruptcy. Although there are opportunities for people with federal loans to take advantage of means-based repayment, students with private loans are still largely out of luck, at the whim of their servicing companies. I have met too many people earning $25,000 a year with $50,000 of private student loans that will never go away.
The Fed labelled this "an ever-increasing pool of delinquent debt." The student loan debt burden can have significant economic implications for the borrowers, the government and society. First, the U.S. taxpayer is on the hook for the $100 billion (and growing) balance of student loan debt that people cannot afford to pay back.
This Affects You, Too
Just lending students more money to fund education -- without thinking about their ability to repay -- is a recipe for disaster. I wonder if sub-prime mortgage underwriters who lost their jobs in 2008 are now working for the government. And it is definitely time for an audit of the loss recognition policies of the US federal student loan portfolio. The government thinks it is making money from student loans. If we start building adequate reserves for student loans in default, that picture may look very different.
But the true loss is to the people with the debt and the larger economy. Having defaulted student loan debt that never goes away means that an individual will have limited ability to be a productive member of society. They will buy fewer cars, save less for retirement and have more stressful lives because they will be receiving daily calls from collection agencies trying to recoup the high interest and fees associated with a decision made in their teens. America has thrived because of a reset button available to all; the next generation has been robbed of that opportunity.
There was a time when you could pay for college by working a part-time job. And there was a time when a college education made sense, regardless of the cost or the major. Unfortunately, we no longer live in that world. And we are not preparing teenagers for the biggest financial decision of their lives. With delinquency already at 11.3 percent, we can only expect it to get worse.
Some Hope
There are two small nuggets of opportunity. First, the private sector is creating opportunities for people to refinance their student loan debt. At least 19 student loan refinance options exist. If your interest rate is above 6 percent, and you have a good job and income, you may be able to find a much lower interest rate with some of these new providers. Given the size of the student loan market, it is not a surprise that a vibrant refinance market will start to develop.
In addition, recent legislation for federal student loans has created the opportunity to lower your payments with an income-driven repayment plan. If you have a private loan, your options are more limited. But you should still give your servicer a call and see what options exist.
Keep an eye on that 90+ delinquency measure. The higher it gets, the harder it will be for us to ignore this problem.
Navient owes the government
For the millions of Americans drowning in debt, non-payment is not an option, and student debt is the worst kind of debt to have. As Sen. Elizabeth Warren (D-Mass.) once remarked, the powers of student-loan debt collectors “would make a mobster envious.” If you’re a company that holds student debt, on the other hand, not paying what you owe is apparently not a big deal.
One of the largest student loan servicing and debt collection companies is actually in debt too. Navient – the same company that harasses borrowers when they default on their loans – owes the U.S. Department of Education, but it seems that no one is collecting. More than five years ago, the federal government discovered that Navient – a company it contracts with to service student loans and collect on students’ debts – owed taxpayers $22.3 million because of government overpayments. An audit by the Department of Education eventually determined that Navient had extracted the money by abusing a federal program intended to help smaller lenders and ordered that the debt be repaid immediately.
{mosads)But to date, the Department of Education has yet to collect on the $22.3 million Navient owes them, despite their impressive track record in recouping debt from the millions of Americans who borrowed money to afford college. In fact, they haven’t even tried to recover the money. That got us thinking: What if Navient’s $22.3 million bill was treated the same way as a student loan by the Department of Education?
The truth is, Navient would actually owe the federal government a lot more than $22.3 million. In 2009, the interest rate on student loans was 5.6 percent and 6.8 percent for subsidized loans and unsubsidized loans respectively, with a 1.5 percent origination fee. So taking interest into account, the Department of Education would rake in an extra $8,964,463.53 (calculated here), but that’s only if Navient made all of their payments on time over 10 years.
But Navient hasn’t made any payments. In other words, Navient is in default on their Department of Education loan. And if Navient were a normal borrower, that default would mean it would no longer be eligible for federal financial aid, and many states would cut off any aid until it started paying back this debt as well. This would have a big impact on Navient, which benefited from the $5.6 million in grant money it got last year to renovate their offices in Delaware and received $5.1 million for housing its offices in the state back in 2011. For many students trying to go back to college, losing grants would put their educational dreams on hold.
And of course, if the Department of Education were to hold Navient accountable like it does other student debtors, it would make sure that creditors knew Sallie Mae wasn’t paying back their loan. Right now, Moody’s credit rating for Navient is “Baa3” – which means that they have moderate risk, but have acceptable ability to repay short-term debt. What would it be if they knew that Navient hadn’t paid back this debt, though? Navient could quickly find itself in the speculative grade (just one below their current rating), and it would suddenly become much harder for Navient to get others to issue them credit, which in turn would impact investors’ choices about their shares of the company, just like a low credit rating can hurt a debtors’ chance of getting access to other forms of credit.
The Department of Education could also use its power to garnish Navient’s income, for example the$154,416,751 the company was paid by the department in 2014 alone. The department can actually take up to 15 percent of a defaulted borrower’s disposable pay, which, in this case, would nearly cover the entirety of the debt Navient owes. Undoubtedly, this would rattle the company’s board of directors, which is tasked with guiding Navient toward financial success. They’d probably have some tough questions for management about why this was happening, questioning their fiscal responsibility, the same way many media pundits and politicians question student debtors’ fiscal responsibility when they default.
Furthermore, when you default on your loan with the Department of Education, you end up owing a lot more above the original amount you borrowed. In fact, “loan debt will increase because of the late fees, additional interest, court costs, collection fees, attorney’s fees, and any other costs associated with the collection process.” Many debtors see their interest rate go above 25 percent once they’re in default, and up to 40 percent of the principle can be added in as a fee or penalty for default. This unpaid debt would quickly become very expensive for Sallie Mae, the same way it does for so many individual borrowers.
But of course, Navient doesn’t get the same default treatment from the Department of Education. This isn’t how the agency treats one of its largest debt servicers and collectors… just regular student debtors struggling to pay back their loans. This nightmare is a reality for the 7 million Americans who are in default on their federal student loans, and it’s why some of the best and brightest high school students aren’t going to college. It’s yet another example of the Department of Education’s complicit role in the student debt crisis and calls into question who the department is serving – “too-big-to-fail” financial institutions or those who are trying to get a college education
One of the largest student loan servicing and debt collection companies is actually in debt too. Navient – the same company that harasses borrowers when they default on their loans – owes the U.S. Department of Education, but it seems that no one is collecting. More than five years ago, the federal government discovered that Navient – a company it contracts with to service student loans and collect on students’ debts – owed taxpayers $22.3 million because of government overpayments. An audit by the Department of Education eventually determined that Navient had extracted the money by abusing a federal program intended to help smaller lenders and ordered that the debt be repaid immediately.
{mosads)But to date, the Department of Education has yet to collect on the $22.3 million Navient owes them, despite their impressive track record in recouping debt from the millions of Americans who borrowed money to afford college. In fact, they haven’t even tried to recover the money. That got us thinking: What if Navient’s $22.3 million bill was treated the same way as a student loan by the Department of Education?
The truth is, Navient would actually owe the federal government a lot more than $22.3 million. In 2009, the interest rate on student loans was 5.6 percent and 6.8 percent for subsidized loans and unsubsidized loans respectively, with a 1.5 percent origination fee. So taking interest into account, the Department of Education would rake in an extra $8,964,463.53 (calculated here), but that’s only if Navient made all of their payments on time over 10 years.
But Navient hasn’t made any payments. In other words, Navient is in default on their Department of Education loan. And if Navient were a normal borrower, that default would mean it would no longer be eligible for federal financial aid, and many states would cut off any aid until it started paying back this debt as well. This would have a big impact on Navient, which benefited from the $5.6 million in grant money it got last year to renovate their offices in Delaware and received $5.1 million for housing its offices in the state back in 2011. For many students trying to go back to college, losing grants would put their educational dreams on hold.
And of course, if the Department of Education were to hold Navient accountable like it does other student debtors, it would make sure that creditors knew Sallie Mae wasn’t paying back their loan. Right now, Moody’s credit rating for Navient is “Baa3” – which means that they have moderate risk, but have acceptable ability to repay short-term debt. What would it be if they knew that Navient hadn’t paid back this debt, though? Navient could quickly find itself in the speculative grade (just one below their current rating), and it would suddenly become much harder for Navient to get others to issue them credit, which in turn would impact investors’ choices about their shares of the company, just like a low credit rating can hurt a debtors’ chance of getting access to other forms of credit.
The Department of Education could also use its power to garnish Navient’s income, for example the$154,416,751 the company was paid by the department in 2014 alone. The department can actually take up to 15 percent of a defaulted borrower’s disposable pay, which, in this case, would nearly cover the entirety of the debt Navient owes. Undoubtedly, this would rattle the company’s board of directors, which is tasked with guiding Navient toward financial success. They’d probably have some tough questions for management about why this was happening, questioning their fiscal responsibility, the same way many media pundits and politicians question student debtors’ fiscal responsibility when they default.
Furthermore, when you default on your loan with the Department of Education, you end up owing a lot more above the original amount you borrowed. In fact, “loan debt will increase because of the late fees, additional interest, court costs, collection fees, attorney’s fees, and any other costs associated with the collection process.” Many debtors see their interest rate go above 25 percent once they’re in default, and up to 40 percent of the principle can be added in as a fee or penalty for default. This unpaid debt would quickly become very expensive for Sallie Mae, the same way it does for so many individual borrowers.
But of course, Navient doesn’t get the same default treatment from the Department of Education. This isn’t how the agency treats one of its largest debt servicers and collectors… just regular student debtors struggling to pay back their loans. This nightmare is a reality for the 7 million Americans who are in default on their federal student loans, and it’s why some of the best and brightest high school students aren’t going to college. It’s yet another example of the Department of Education’s complicit role in the student debt crisis and calls into question who the department is serving – “too-big-to-fail” financial institutions or those who are trying to get a college education
Global Corrupution Report(Education Sector)
Corruption and poor governance are acknowledged as major impediments to
realising the right to education and to reaching global development goals.
Corruption not only distorts access to education, but affects the quality of
education and the reliability of research findings. From corruption in the
procurement of school resources and nepotism in the hiring of teachers, to the
buying and selling of academic titles and the skewing of research results, major
corruption risks can be identified at every level of the education and research
systems. At the same time, education serves as a means to strengthen personal
integrity and is a critical tool to address corruption effectively. The
Global Corruption Report is Transparency International’s flagship
publication, bringing the expertise of the anti-corruption movement to bear on a
specific corruption issue or sector. The Global Corruption Report:
Education consists of more than 70 articles commissioned from experts in
the field of corruption and education, from universities, think tanks, business,
civil society and international organisations.
The report can be found on the Doucments & PDF page.
The report can be found on the Doucments & PDF page.
Obama Tax Hike on College Savings Plans Breaks Middle Class Tax Pledge
***THIS IS A GREAT ARTICULAR THAT EVERYONE SHOULD READ***
Tonight, in his State of the Union address, President Obama will propose a series of tax increases on the American people. One of these tax increases is indisputably an income tax hike on middle class families with children.
Under Obama’s plan, earnings in “Section 529” (named for its location in the Internal Revenue Code) college savings plans will face full income taxation upon withdrawal.
Under current law, earnings growth in 529 plans is tax-free if account distributions are used to pay for college tuition and fees. The Obama plan will tax earnings in these accounts even if they are used to pay for college tuition and fees.
These accounts are commonly used by middle class families. There are about 12 million 529 accounts open today, and they have an average account balance of approximately $21,000. Most 529 plans permit monthly contributions as low as $25 per month.
This middle class income tax increase is a clear violation of President Obama's “firm pledge” against “any form of tax increase” on any family making less than $250,000. This promise to the American people is documented below:
Speaking in Dover, New Hampshire on Sept. 12, 2008, candidate Obama said:
“I can make a firm pledge. Under my plan, no family making less than $250,000 a year will see any form of tax increase. Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes.” [Video]
During a nationally televised Vice-Presidential debate in St. Louis on Oct. 3, 2008, candidate Joe Biden said:
“No one making less than $250,000 under Barack Obama’s plan will see one single penny of their tax raised whether it’s their capital gains tax, their income tax, investment tax, any tax.” [Transcript]
In an address to a joint session of Congress on Feb. 24, 2009, President Obama restated the promise in forceful terms:
“If your family earns less than $250,000 a year, you will not see your taxes increased a single dime. I repeat: not one single dime.” [Transcript] [Video]
"Rather than raise taxes on middle class families trying to save for their children’s education, Obama should abolish the seven tax increases in Obamacare that directly hit middle-income Americans,” said Grover Norquist, president of Americans for Tax Reform.
Tonight, in his State of the Union address, President Obama will propose a series of tax increases on the American people. One of these tax increases is indisputably an income tax hike on middle class families with children.
Under Obama’s plan, earnings in “Section 529” (named for its location in the Internal Revenue Code) college savings plans will face full income taxation upon withdrawal.
Under current law, earnings growth in 529 plans is tax-free if account distributions are used to pay for college tuition and fees. The Obama plan will tax earnings in these accounts even if they are used to pay for college tuition and fees.
These accounts are commonly used by middle class families. There are about 12 million 529 accounts open today, and they have an average account balance of approximately $21,000. Most 529 plans permit monthly contributions as low as $25 per month.
This middle class income tax increase is a clear violation of President Obama's “firm pledge” against “any form of tax increase” on any family making less than $250,000. This promise to the American people is documented below:
Speaking in Dover, New Hampshire on Sept. 12, 2008, candidate Obama said:
“I can make a firm pledge. Under my plan, no family making less than $250,000 a year will see any form of tax increase. Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes.” [Video]
During a nationally televised Vice-Presidential debate in St. Louis on Oct. 3, 2008, candidate Joe Biden said:
“No one making less than $250,000 under Barack Obama’s plan will see one single penny of their tax raised whether it’s their capital gains tax, their income tax, investment tax, any tax.” [Transcript]
In an address to a joint session of Congress on Feb. 24, 2009, President Obama restated the promise in forceful terms:
“If your family earns less than $250,000 a year, you will not see your taxes increased a single dime. I repeat: not one single dime.” [Transcript] [Video]
"Rather than raise taxes on middle class families trying to save for their children’s education, Obama should abolish the seven tax increases in Obamacare that directly hit middle-income Americans,” said Grover Norquist, president of Americans for Tax Reform.
Wells Fargo sell's $8.5 billion of federal backed loans to Navient
Earlier this year, Wells Fargo announced plans to get out of the payday loan-like business of direct deposit advances. Now it looks like the banking giant is getting ready to shed another aspect of its business: government-guaranteed student loans. The Wall Street Journal reports that Wells Fargo struck a deal to sell $8.5 billion of loans to the loan management firm Navient, which in part means consumers will have to change the name of the company they send monthly payments to. Navient, the largest servicer of federal and private student loans, was spun off from Sallie Mae earlier this year. Wells Fargo, which had previously moved $9.7 billion in government-guaranteed loans to its held-for-sale portfolio in July, did not disclose the cost of the sale. Separating the loans from the rest of the company’s student loan portfolio appears to be a long time coming. The bank stopped originating federal student loans back in 2010. Officials with Wells Fargo say the decision to sell the loans was related to their relatively low-yield. “They’re not strategic. We don’t have bigger relationships with most of those customers,” CFO John Shrewberry tells the WSJ. Even with the sale of government-backed loans, Wells Fargo won’t be getting out of the private student loan business anytime soon. The company is currently the largest private student lender among U.S. banks with $11.9 billion in loans outstanding.
This is just a little insight into what the proposal section of the SEC 10-Q Report
Click Here for the full report
Stockholder Proposals
We intend to hold our first Annual Meeting of Stockholders (the “Annual Meeting”) on May 21, 2015, at a time and location to be determined and specified in our proxy statement related to the Annual Meeting.
Under the SEC’s proxy rules, we have set the deadline for submission of proposals to be included in our proxy materials for the Annual Meeting as January 1, 2015. Accordingly, in order for a stockholder proposal to be considered for inclusion in our proxy materials for the Annual Meeting, the proposal must be received by the Corporate Secretary, Navient Corporation, 300 Continental Drive, Newark, Delaware 19713, on or before January 1, 2015, and comply with the procedures and requirements set forth in Rule 14a-8 under the Exchange Act.
In accordance with the advance notice requirements contained in our amended and restated bylaws, for director nominations or other business to be brought before the Annual Meeting by a stockholder, other than Rule 14a-8 proposals described above, written notice must be delivered no earlier than the close of business on January 21, 2015, and no later than the close of business on February 20, 2015, to our new corporate headquarters address, which will be effective on or about January 15, 2015: Corporate Secretary, Navient Corporation, 123 Justison Street, Suite 400, Wilmington, Delaware 19801. These stockholder notices must also comply with the requirements of our amended and restated bylaws and will not be effective otherwise.
Item 6.Exhibits
The following exhibits are furnished or filed, as applicable:
2.1 The Agreement and Plan of Merger, dated as of October 16, 2014, between Navient Corporation and Navient, LLC (incorporated by reference to Exhibit 2.1 to Navient Corporation’s Current Report on Form 8-K filed on October 17, 2014).
3.1 Amended and Restated Certificate of Incorporation of Navient Corporation (incorporated by reference to Exhibit 3.1 of Amendment No. 3 to Navient Corporation’s Registration Statement on Form 10 (File No. 001-36228) filed on March 27, 2014).
3.2 Amended and Restated By-Laws of Navient Corporation (incorporated by reference to Exhibit 3.2 of Amendment No. 3 to Navient Corporation’s Registration Statement on Form 10 (File No. 001-36228) filed on March 27, 2014).
4.1 The Second Supplemental Indenture, dated as of October 16, 2014, between Navient Corporation and Deutsche Trust Company Limited, as trustee (incorporated by reference to Exhibit 4.1 to Navient Corporation’s Current Report on Form 8-K filed on October 17, 2014).
4.2 The Eighth Supplemental Indenture, dated as of October 16, 2014, between Navient Corporation and The Bank of New York Mellon, as trustee (incorporated by reference to Exhibit 4.2 to Navient Corporation’s Current Report on Form 8-K filed on October 17, 2014).
10.1 Navient Corporation Executive Severance Plan of Senior Officers (incorporated by reference to Exhibit 10.1 to Navient Corporation’s Current Report on Form 8-K filed on August 19, 2014).
10.2† Navient Corporation Change in Control Severance Plan of Senior Officers (incorporated by reference to Exhibit 10.2 to Navient Corporation’s Current Report on Form 8-K filed on August 19, 2014).
Stockholder Proposals
We intend to hold our first Annual Meeting of Stockholders (the “Annual Meeting”) on May 21, 2015, at a time and location to be determined and specified in our proxy statement related to the Annual Meeting.
Under the SEC’s proxy rules, we have set the deadline for submission of proposals to be included in our proxy materials for the Annual Meeting as January 1, 2015. Accordingly, in order for a stockholder proposal to be considered for inclusion in our proxy materials for the Annual Meeting, the proposal must be received by the Corporate Secretary, Navient Corporation, 300 Continental Drive, Newark, Delaware 19713, on or before January 1, 2015, and comply with the procedures and requirements set forth in Rule 14a-8 under the Exchange Act.
In accordance with the advance notice requirements contained in our amended and restated bylaws, for director nominations or other business to be brought before the Annual Meeting by a stockholder, other than Rule 14a-8 proposals described above, written notice must be delivered no earlier than the close of business on January 21, 2015, and no later than the close of business on February 20, 2015, to our new corporate headquarters address, which will be effective on or about January 15, 2015: Corporate Secretary, Navient Corporation, 123 Justison Street, Suite 400, Wilmington, Delaware 19801. These stockholder notices must also comply with the requirements of our amended and restated bylaws and will not be effective otherwise.
Item 6.Exhibits
The following exhibits are furnished or filed, as applicable:
2.1 The Agreement and Plan of Merger, dated as of October 16, 2014, between Navient Corporation and Navient, LLC (incorporated by reference to Exhibit 2.1 to Navient Corporation’s Current Report on Form 8-K filed on October 17, 2014).
3.1 Amended and Restated Certificate of Incorporation of Navient Corporation (incorporated by reference to Exhibit 3.1 of Amendment No. 3 to Navient Corporation’s Registration Statement on Form 10 (File No. 001-36228) filed on March 27, 2014).
3.2 Amended and Restated By-Laws of Navient Corporation (incorporated by reference to Exhibit 3.2 of Amendment No. 3 to Navient Corporation’s Registration Statement on Form 10 (File No. 001-36228) filed on March 27, 2014).
4.1 The Second Supplemental Indenture, dated as of October 16, 2014, between Navient Corporation and Deutsche Trust Company Limited, as trustee (incorporated by reference to Exhibit 4.1 to Navient Corporation’s Current Report on Form 8-K filed on October 17, 2014).
4.2 The Eighth Supplemental Indenture, dated as of October 16, 2014, between Navient Corporation and The Bank of New York Mellon, as trustee (incorporated by reference to Exhibit 4.2 to Navient Corporation’s Current Report on Form 8-K filed on October 17, 2014).
10.1 Navient Corporation Executive Severance Plan of Senior Officers (incorporated by reference to Exhibit 10.1 to Navient Corporation’s Current Report on Form 8-K filed on August 19, 2014).
10.2† Navient Corporation Change in Control Severance Plan of Senior Officers (incorporated by reference to Exhibit 10.2 to Navient Corporation’s Current Report on Form 8-K filed on August 19, 2014).
Found the conference Call for Navient's financial conference call.
This is a link to the navient investers page where the confrence call is located. To listen to the call just fill out the form and when it ask you for company just put "customer".
Conference Call
Conference Call
Is it to expensive to go to College?
U.S. Extends Navient Corp. student loan contract
WASHINGTON—The U.S. Education Department has extended a major student-loan contract with a former Sallie Mae division, despite pressure from student, union and liberal groups to end the arrangement, an official familiar with the matter said Tuesday.
Navient Corp.'s work for the government, worth $106 million last year, had come under fire for allegations it overcharged military members and hit borrowers with excessive fees. The company was spun off as a separate corporate entity from Sallie Mae earlier this year. Its contract was set to expire this month.
Critics had urged the Education Department to avoid renewing the contract, pointing to a $97 million settlement the companies reached last month with the Justice Department and Federal Deposit Insurance Corp over the allegations of overcharging.
Under the pact, the companies didn't admit or deny the allegations, but Navient CEO John Remondi apologized for some "processing errors."
Union groups including the AFL-CIO and National Education Association, along with several student organizations, last month started a petition urging Education Secretary Arne Duncan to cut the company off.
But the Education Department concluded that it would be "irresponsible to cause interruptions for borrowers" while the government reviews the company's performance, the Education Department official said. "If we determine it is appropriate to end a contract with a servicer, we would need a transition period to smoothly transfer loans to another company," the official said.
The government also extended the contracts of three other loan servicers: Great Lakes Educational Loan Services Inc., Nelnet Inc. and the Pennsylvania Higher Education Assistance Agency, the official said.
The government also plans to review its contracts with all of its loan servicers to "look for ways to strengthen financial incentives for companies that receive good customer satisfaction ratings and help borrowers better manage their debt," the official said.
The move comes after President Barack Obama last week called for new steps to make loan assistance and refinancing more available to student borrowers. Mr. Obama also said the Education Department will restructure those contracts to put increased emphasize on borrowers' satisfaction.
The dispute is the latest example of how Democrats have seized on student-lending issues as a potent election-year issue.
Some of the most intense criticism has come from lawmakers on Capitol Hill, in public hearings with Education Department officials. "We continue to hear how unhappy people are with Sallie Mae quarter after quarter," Sen. Tom Harkin (D., Iowa) said at a hearing in March.
Navient, based in Newark, Del., currently collects payments on $166 billion of federal loans to roughly six million borrowers, the third largest total of the 11 companies that collect payments on federal student loans.
In response to criticisms, company executives point to federal statistics showing the company performs better than other servicers, including the lowest percentage of defaulted borrowers of any major loan servicer, as of the first quarter of 2014.
The company "helps more Americans successfully pay back their student loans than any other direct loan servicer," said spokeswoman Patricia Nash Christel.
The dispute is the latest chapter in a rocky relationship between Sallie Mae and the federal government. The company was created by the government as the Student Loan Marketing Association, and was fully privatized in 2004. The company began looking at dividing in two after the federal government ended a program in 2010 that let institutions such as Sallie Mae originate federally guaranteed student loans and completed the split this year.
Navient Corp.'s work for the government, worth $106 million last year, had come under fire for allegations it overcharged military members and hit borrowers with excessive fees. The company was spun off as a separate corporate entity from Sallie Mae earlier this year. Its contract was set to expire this month.
Critics had urged the Education Department to avoid renewing the contract, pointing to a $97 million settlement the companies reached last month with the Justice Department and Federal Deposit Insurance Corp over the allegations of overcharging.
Under the pact, the companies didn't admit or deny the allegations, but Navient CEO John Remondi apologized for some "processing errors."
Union groups including the AFL-CIO and National Education Association, along with several student organizations, last month started a petition urging Education Secretary Arne Duncan to cut the company off.
But the Education Department concluded that it would be "irresponsible to cause interruptions for borrowers" while the government reviews the company's performance, the Education Department official said. "If we determine it is appropriate to end a contract with a servicer, we would need a transition period to smoothly transfer loans to another company," the official said.
The government also extended the contracts of three other loan servicers: Great Lakes Educational Loan Services Inc., Nelnet Inc. and the Pennsylvania Higher Education Assistance Agency, the official said.
The government also plans to review its contracts with all of its loan servicers to "look for ways to strengthen financial incentives for companies that receive good customer satisfaction ratings and help borrowers better manage their debt," the official said.
The move comes after President Barack Obama last week called for new steps to make loan assistance and refinancing more available to student borrowers. Mr. Obama also said the Education Department will restructure those contracts to put increased emphasize on borrowers' satisfaction.
The dispute is the latest example of how Democrats have seized on student-lending issues as a potent election-year issue.
Some of the most intense criticism has come from lawmakers on Capitol Hill, in public hearings with Education Department officials. "We continue to hear how unhappy people are with Sallie Mae quarter after quarter," Sen. Tom Harkin (D., Iowa) said at a hearing in March.
Navient, based in Newark, Del., currently collects payments on $166 billion of federal loans to roughly six million borrowers, the third largest total of the 11 companies that collect payments on federal student loans.
In response to criticisms, company executives point to federal statistics showing the company performs better than other servicers, including the lowest percentage of defaulted borrowers of any major loan servicer, as of the first quarter of 2014.
The company "helps more Americans successfully pay back their student loans than any other direct loan servicer," said spokeswoman Patricia Nash Christel.
The dispute is the latest chapter in a rocky relationship between Sallie Mae and the federal government. The company was created by the government as the Student Loan Marketing Association, and was fully privatized in 2004. The company began looking at dividing in two after the federal government ended a program in 2010 that let institutions such as Sallie Mae originate federally guaranteed student loans and completed the split this year.
Wow...Navient building caught fire
HANOVER TWP. — Employees at Navient, formerly known as Sallie Mae, returned Friday, a day after they were sent home for the day due to a fire that erupted in an electrical closet at the facility in the Hanover Industrial Estates.
Navient spokesperson Nikki A. Lavoie said Friday morning that the facility reopened for business.
Hanover Township Fire Department Incident Commander Stanley Browski said the fire started in a second-floor electrical closet and started to break through the door when a maintenance worker hit it with a fire extinguisher. The fire was contained to a closet.
The sprinkler system was engaged because of the amount and degree of heat. Fire crews placed salvage covers “over everything from the first floor” to protect company equipment, Browski said.
“At around 2:15 p.m., there was a fire at the Navient Servicing Center in Wilkes-Barre, Pa., located in the Hanover Industrial Park, where about 1,050 people are employed,” Lavoie wrote in an email.
“Emergency personnel responded to the fire and all employees were safely evacuated from the building. We are grateful to the emergency responders who helped ensure the safety of our employees,” Lavoie added.
The facility formerly was known as Sallie Mae, prior to a name change that took effect earlier this year.
The new name took effect April 30, after student loan giant Sallie Mae decided to split its business into two unique, publicly traded companies.
While Sallie Mae will remain the name of the company's consumer banking business, Navient handles loan management, servicing and asset recovery.
Servicing continues under the Sallie Mae name during a transition period for customers this fall, Lavoie said.
Navient spokesperson Nikki A. Lavoie said Friday morning that the facility reopened for business.
Hanover Township Fire Department Incident Commander Stanley Browski said the fire started in a second-floor electrical closet and started to break through the door when a maintenance worker hit it with a fire extinguisher. The fire was contained to a closet.
The sprinkler system was engaged because of the amount and degree of heat. Fire crews placed salvage covers “over everything from the first floor” to protect company equipment, Browski said.
“At around 2:15 p.m., there was a fire at the Navient Servicing Center in Wilkes-Barre, Pa., located in the Hanover Industrial Park, where about 1,050 people are employed,” Lavoie wrote in an email.
“Emergency personnel responded to the fire and all employees were safely evacuated from the building. We are grateful to the emergency responders who helped ensure the safety of our employees,” Lavoie added.
The facility formerly was known as Sallie Mae, prior to a name change that took effect earlier this year.
The new name took effect April 30, after student loan giant Sallie Mae decided to split its business into two unique, publicly traded companies.
While Sallie Mae will remain the name of the company's consumer banking business, Navient handles loan management, servicing and asset recovery.
Servicing continues under the Sallie Mae name during a transition period for customers this fall, Lavoie said.
U.S. Education Department Considering Navient for Federal Student Loan Contract, Why Critics Are Upset
The U.S. Education Department has narrowed its list of finalists for managing its student loans to four and one company stands accused of cheating active duty military members.
According to the Huffington Post, the Education Department (ED) named Navient Corp., the nation's largest student loan company, to a list of finalists for a contract that could last a decade and be valued at more than a billion dollars. The company granted the contract would be responsible for drawing up new federal student loans and grants while managing existing ones.
The ED made the move May 30 and it is bound to irk some of the department's biggest critics. Navient and its partner Sallie Mae were under a Department of Justice and Federal Deposit Insurance Corp. (FDIC) investigation as recently as last month, though both sides reached a settlement May 13.
In the investigation, the Justice Department and FDIC accused Navient of overcharging active duty servicemembers on purpose. The student loan company is also accused of lying and telling military members they needed to be deployed to reap their benefits. Both would be a violation of the Servicemembers Civil Relief Act and investigators estimated some 60,000 people in the military were affected.
Navient and Sallie Mae recently split into two companies, while the latter was in the midst of its own trouble. Sallie Mae, now a bank, stood accused of borrower's rights violations while the ED took heat for favoring the company despite knowing of the allegations. Now Navient handles Sallie Mae's student loans.
Neither one admitted wrongdoing in the case of the Servicemembers Civil Relief Act investigation, but Navient CEO John Remondi issued a formal apology for "processing errors."
Navient is vying to replace Accenture LLP, the company that currently holds a contract with the ED for $880 million when last valued May 19. Neither Navient nor the ED responded to the HP for comment, but student loan borrower's rights advocate Chris Hicks made his opinion known. Hicks works for Jobs With Justice, a nonprofit in Washington D.C., by operating the Debt-Free Future campaign.
"The Department of Education's actions show how tone deaf they are to what is going on around them," Hicks told the HP. "As tens of thousands servicemembers wait to be refunded money they were allegedly overcharged by Sallie Mae, the Education Department has been talking about rewarding Sallie Mae with an even larger contract that requires them to work with millions of more students."
According to the Huffington Post, the Education Department (ED) named Navient Corp., the nation's largest student loan company, to a list of finalists for a contract that could last a decade and be valued at more than a billion dollars. The company granted the contract would be responsible for drawing up new federal student loans and grants while managing existing ones.
The ED made the move May 30 and it is bound to irk some of the department's biggest critics. Navient and its partner Sallie Mae were under a Department of Justice and Federal Deposit Insurance Corp. (FDIC) investigation as recently as last month, though both sides reached a settlement May 13.
In the investigation, the Justice Department and FDIC accused Navient of overcharging active duty servicemembers on purpose. The student loan company is also accused of lying and telling military members they needed to be deployed to reap their benefits. Both would be a violation of the Servicemembers Civil Relief Act and investigators estimated some 60,000 people in the military were affected.
Navient and Sallie Mae recently split into two companies, while the latter was in the midst of its own trouble. Sallie Mae, now a bank, stood accused of borrower's rights violations while the ED took heat for favoring the company despite knowing of the allegations. Now Navient handles Sallie Mae's student loans.
Neither one admitted wrongdoing in the case of the Servicemembers Civil Relief Act investigation, but Navient CEO John Remondi issued a formal apology for "processing errors."
Navient is vying to replace Accenture LLP, the company that currently holds a contract with the ED for $880 million when last valued May 19. Neither Navient nor the ED responded to the HP for comment, but student loan borrower's rights advocate Chris Hicks made his opinion known. Hicks works for Jobs With Justice, a nonprofit in Washington D.C., by operating the Debt-Free Future campaign.
"The Department of Education's actions show how tone deaf they are to what is going on around them," Hicks told the HP. "As tens of thousands servicemembers wait to be refunded money they were allegedly overcharged by Sallie Mae, the Education Department has been talking about rewarding Sallie Mae with an even larger contract that requires them to work with millions of more students."
Sallie Mae spin-off Navient will lay its foundation in Wilmington.
Navient, a spin-off company of Sallie Mae that will handle loan management and asset recovery, has chosen to base its corporate headquarters in Wilmington.
The new company, expected to launch later this year, has signed a 7-year lease with Pettinaro to occupy about 40,000-square-feet in the Star Building on Wilmington’s Riverfront. The Riverfront location was chosen for its infrastructure, proximity to Wilmington’s Amtrak station, and quality of life attractions in the surrounding areas.
Navient expects to employ at least 120 people at it’s new Wilmington Headquarters, leaving room to expand in the future.
“I am glad that Navient chose the city of Wilmington as headquarters for this growing new company,” said Governor Jack Markell (D-Delaware) in a statement. “Wilmington is a hub for many financial services companies, and Navient will fit right in. We look forward to working together to help Navient grow and expand in the years to come.”
“This is a strong signal that Wilmington remains a good investment option for businesses and is a preferred location to settle. The city looks forward to working with Navient, and we wish them much success,” said Mayor Dennis P. Williams in his own statement.
Sallie Mae will continue to handle its consumer banking business and also expects to hire new workers at its headquarters off of Churchman’s Road in Newark.
Navient will also continue leasing space in Newark at the the Iron Hill Corporate Center.
Navient anticipates on servicing $300 billion in student loans from about 12 million customers as well as providing asset recovery services for over 1,500 government, higher education, and business clients.
The new company, expected to launch later this year, has signed a 7-year lease with Pettinaro to occupy about 40,000-square-feet in the Star Building on Wilmington’s Riverfront. The Riverfront location was chosen for its infrastructure, proximity to Wilmington’s Amtrak station, and quality of life attractions in the surrounding areas.
Navient expects to employ at least 120 people at it’s new Wilmington Headquarters, leaving room to expand in the future.
“I am glad that Navient chose the city of Wilmington as headquarters for this growing new company,” said Governor Jack Markell (D-Delaware) in a statement. “Wilmington is a hub for many financial services companies, and Navient will fit right in. We look forward to working together to help Navient grow and expand in the years to come.”
“This is a strong signal that Wilmington remains a good investment option for businesses and is a preferred location to settle. The city looks forward to working with Navient, and we wish them much success,” said Mayor Dennis P. Williams in his own statement.
Sallie Mae will continue to handle its consumer banking business and also expects to hire new workers at its headquarters off of Churchman’s Road in Newark.
Navient will also continue leasing space in Newark at the the Iron Hill Corporate Center.
Navient anticipates on servicing $300 billion in student loans from about 12 million customers as well as providing asset recovery services for over 1,500 government, higher education, and business clients.
The NEW Sallie Mae
The new company, Navient, will assume all the responsibilities previously performed by Sallie Mae as a federal loan servicer. A loan servicer is a company that handles the billing and other services on your federal student loan. The loan servicer works with you on repayment plans and loan consolidation and assists you with other tasks related to your federal student loan.
If Sallie Mae is the loan servicer for your William D. Ford Federal Direct Loan (Direct Loan) Program and the Federal Family Education Loan (FFEL) Program loans owned by the U.S. Department of Education (ED), Navient will manage those loans beginning in fall 2014. Your loans will not be transferred. This is a name change, and it will not impact the existing terms, conditions, interest rate, or available repayment plans of your federal student loans.
Note: If you have FFEL Program loans not owned by ED but serviced by Sallie Mae today, Navient will manage those loans later this fall. If you have private education loans serviced by Sallie Mae, you will receive information in the coming months with information about those loans.
If your federal loan servicer is Sallie Mae, there is no action you need to take at this time. Over the next several months, Sallie Mae and ED will contact you and provide details of the name change and any actions you may need to take.
We encourage you to review our frequently asked questions below to understand how this change may impact you in the future. If you have questions, contact Sallie Mae directly at 1‑800‑722‑1300.
If Sallie Mae is the loan servicer for your William D. Ford Federal Direct Loan (Direct Loan) Program and the Federal Family Education Loan (FFEL) Program loans owned by the U.S. Department of Education (ED), Navient will manage those loans beginning in fall 2014. Your loans will not be transferred. This is a name change, and it will not impact the existing terms, conditions, interest rate, or available repayment plans of your federal student loans.
Note: If you have FFEL Program loans not owned by ED but serviced by Sallie Mae today, Navient will manage those loans later this fall. If you have private education loans serviced by Sallie Mae, you will receive information in the coming months with information about those loans.
If your federal loan servicer is Sallie Mae, there is no action you need to take at this time. Over the next several months, Sallie Mae and ED will contact you and provide details of the name change and any actions you may need to take.
We encourage you to review our frequently asked questions below to understand how this change may impact you in the future. If you have questions, contact Sallie Mae directly at 1‑800‑722‑1300.
Frequently Asked Questions
Do I need to take any action if Sallie Mae is not my federal loan servicer?
No. If Sallie Mae is not your federal loan servicer, you will not be impacted by this change.
Is there an immediate change for me if Sallie Mae is not my federal loan servicer?
No. There’s nothing you need to do now, and you’ll know about the changes well in advance. There will be only a couple of minor changes that will affect you—the name of your loan servicer and the servicer’s website—and the changes won’t be implemented until fall 2014. Over the next several months, Sallie Mae and ED will contact you about the name change to Navient.
Will the terms and conditions of my federal student loans be impacted by this change?
No. This change in servicer name will not impact the existing terms, conditions, interest rate, or available repayment plans of your federal student loans.
Will I need to use a different phone number to reach Navient in fall 2014?
No. The phone number you use today to contact Sallie Mae for assistance with your federal student loans will be the phone number you’ll use to contact Navient after the name change occurs in the fall.
Will I need to use a different mailing address after the name change to Navient in fall 2014?
No. With the exception of including the new company’s name, the mailing address you use today to contact Sallie Mae will be the mailing address you’ll use to contact Navient after the name change occurs in the fall.
Will I need to use a different website after the name change to Navient in fall 2014?
Yes. Navient will have a new website for you to use, but all of the same information about your federal student loans will be there. Sallie Mae will tell you more about the new website in its e-mails over the next several months. During the transition period, Sallie Mae will link to the new website from its existing site. Until the name change occurs, you’ll continue to use the existing website.
Will I need to redo actions related to the current status of my federal student loan account (for example, reapply for a deferment or forbearance) after the name change to Navient in fall 2014?
No. Your federal student loan account status will not change after the name change to Navient occurs in the fall. In addition, if you have a request in process when the name change occurs, it will be completed by Navient.
Will I need to reestablish my preferred payment method for my federal student loans after the name change to Navient in fall 2014?
No. You’ll continue on the same payment method for your federal student loans that you’ve been on with Sallie Mae and won’t need to reestablish that payment method with Navient after the name change occurs in the fall.
As an example, if your payment method with Sallie Mae is automatic debit, your payment method will be automatic debit with Navient. You’ll need to take action only if you decide to change payment methods later.
If I make federal student loan payments by check or through a bank or bill paying service, will I need to take any action after the name change to Navient in fall 2014?
Yes. If you make federal student loan payments by check or use a bank or bill paying service to make your federal student loan payments, you’ll need to begin using Navient’s name after the name change occurs in the fall. Until that time, you’ll continue to use Sallie Mae’s name.
Although you’ll need to use Navient’s name when instructed, the payment address that you use today with Sallie Mae to make federal student loan payments by check or through a bank or bill paying service will be the payment address used by Navient.
Where can I get more information about the name change to Navient in fall 2014?
If you have additional questions about Navient, visit www.SallieMae.com/future.
No. If Sallie Mae is not your federal loan servicer, you will not be impacted by this change.
Is there an immediate change for me if Sallie Mae is not my federal loan servicer?
No. There’s nothing you need to do now, and you’ll know about the changes well in advance. There will be only a couple of minor changes that will affect you—the name of your loan servicer and the servicer’s website—and the changes won’t be implemented until fall 2014. Over the next several months, Sallie Mae and ED will contact you about the name change to Navient.
Will the terms and conditions of my federal student loans be impacted by this change?
No. This change in servicer name will not impact the existing terms, conditions, interest rate, or available repayment plans of your federal student loans.
Will I need to use a different phone number to reach Navient in fall 2014?
No. The phone number you use today to contact Sallie Mae for assistance with your federal student loans will be the phone number you’ll use to contact Navient after the name change occurs in the fall.
Will I need to use a different mailing address after the name change to Navient in fall 2014?
No. With the exception of including the new company’s name, the mailing address you use today to contact Sallie Mae will be the mailing address you’ll use to contact Navient after the name change occurs in the fall.
Will I need to use a different website after the name change to Navient in fall 2014?
Yes. Navient will have a new website for you to use, but all of the same information about your federal student loans will be there. Sallie Mae will tell you more about the new website in its e-mails over the next several months. During the transition period, Sallie Mae will link to the new website from its existing site. Until the name change occurs, you’ll continue to use the existing website.
Will I need to redo actions related to the current status of my federal student loan account (for example, reapply for a deferment or forbearance) after the name change to Navient in fall 2014?
No. Your federal student loan account status will not change after the name change to Navient occurs in the fall. In addition, if you have a request in process when the name change occurs, it will be completed by Navient.
Will I need to reestablish my preferred payment method for my federal student loans after the name change to Navient in fall 2014?
No. You’ll continue on the same payment method for your federal student loans that you’ve been on with Sallie Mae and won’t need to reestablish that payment method with Navient after the name change occurs in the fall.
As an example, if your payment method with Sallie Mae is automatic debit, your payment method will be automatic debit with Navient. You’ll need to take action only if you decide to change payment methods later.
If I make federal student loan payments by check or through a bank or bill paying service, will I need to take any action after the name change to Navient in fall 2014?
Yes. If you make federal student loan payments by check or use a bank or bill paying service to make your federal student loan payments, you’ll need to begin using Navient’s name after the name change occurs in the fall. Until that time, you’ll continue to use Sallie Mae’s name.
Although you’ll need to use Navient’s name when instructed, the payment address that you use today with Sallie Mae to make federal student loan payments by check or through a bank or bill paying service will be the payment address used by Navient.
Where can I get more information about the name change to Navient in fall 2014?
If you have additional questions about Navient, visit www.SallieMae.com/future.
Navient's Strategies
Navient will seek to create value for stockholders by, among other things:
- Expanding its leading education loan portfolio manager, servicer and collection business. Navient intends to make opportunistic acquisitions of FFELP Loans, both to increase cash flow from its loan portfolio and to
- expand its FFELP Loan servicing business. In addition, although Navient will not originate new Private Education Loans, it will seek to purchase portfolios of Private Education Loans, subject to the limitations of any non-competition arrangements with SLM BankCo. Navient may also acquire portfolios of Private Education Loans from SLM BankCo, through participation in an arm’s-length bidding or auction process.
- Diversifying fee revenue through expansion and growth of federal and other service contracts. Navient intends to leverage its platform to expand its servicing and collections business to more third party owners of education loan portfolios and guarantors, including ED.
- Maintaining stable dividends and actively managing capital structure. Navient expects to have sufficient liquidity to pursue a policy of returning capital to stockholders through dividends and share repurchases, without impairing its ability to service its $18.3 billion of unsecured public debt outstanding as of December 31, 2013.
- Efficiently managing expense base. Navient will align its cost structure with its business operations, including by pursuing operating efficiencies in its businesses that create value for its stockholders. These initiatives will include exploring new procurement strategies as well as enhancements to its web-based customer service interface.
- Maintaining access to capital markets. Upon completion of the separation, Navient will be a publicly traded company listed on NASDAQ. Navient expects that its significant loan portfolio, supplemented by its servicing business, will afford it the opportunity to access the debt markets when appropriate.
- Navient also intends to leverage its experience in the student loan-backed securitization market to continue to finance its acquisition of student loan portfolios through securitization debt.