Navient

Navient Corporation is a U.S. corporation based in Wilmington, Delaware, which provides technology-enabled education finance and business processing solutions that simplify complex programs and help millions of people achieve success. Navient employs more than 4,000 individuals across the U.S.[2]

Navient Corporation
FormerlySallie Mae
TypePublic
IndustryFinancial services
FoundedApril 30, 2014
HeadquartersWilmington, Delaware, U.S.
Key people
John F. Remondi (President and CEO)
RevenueUS$2.21 billion (2021)
Total assetsUS$80.605 billion (2021)
Number of employees
4,330 (2021)[1]
Websitenavient.com

The company was formed in 2014 by the split of Sallie Mae into two distinct entities.

History

The Student Loan Marketing Association (nicknamed Sallie Mae) was established in 1973 as a Government-Sponsored Enterprise (GSE).[3][4] The company was created by Congress to support the student loan program established by the Higher Education Act of 1965.[5]

In 2004, Sallie Mae’s GSE charter dissolved and it became a private-sector company with an independent board.[6]

The U.S. Department of Education selected Sallie Mae in 2009 to service federal loans on its behalf.[7]

In 2010, Congress passed the Health Care and Education Reconciliation Act of 2010, which eliminated the federally guaranteed loan program known as Federal Family Education Loan Program (FFELP), under which banks and companies like Sallie Mae made loans to college students that were ultimately backed by a federal guarantee that the loan will be repaid to the lender. As a result, effective July 1, 2010, all federal loans were originated directly by the U.S. Department of Education.

The company announced in 2013 its plans to separate into two publicly traded companies[8] – an education loan management business to be launched with a new name – Navient – and a consumer banking business, which retained the name Sallie Mae.[9] The spin-off was completed on April 30, 2014.

Navient became a leading contractor providing loan management and servicing services on behalf of the U.S. Department of Education. In October 2021, Navient exited its role as a servicer for the Department of Education, transitioning its contract to Maximus.[10] Today, Navient continues to provide its customers with loan management services for private and legacy FFELP student loans that it services.

Navient has been recognized for its gender diversity on its board of directors since 2014 by organizations including the Women on Boards[11], the Women's Forum of New York, the New York Stock Exchange Governance Services, and The Forum of Executive Women[12][13].

Navient has consistently landed in the 90th percentile or above on the Human Rights Campaign Corporate Equality Index.[14]

Navient is a member of the Veterans Jobs Mission; and has been recognized as a Military Friendly Employer[15] and Military Friendly Spouse Employer.[16]

Navient has diversified its business through various strategic acquisitions since 2014:

  • 2015: Gila, which is a government payments solutions provider.
  • 2015: Xtend Healthcare, which specializes in revenue cycle management for both private sector healthcare providers and public health authorities.
  • 2017: Duncan, which specializes in transportation management and parking and tolling management solutions.
  • 2017: Earnest, which specializes in consumer lending.
  • 2021: Going Merry, a college scholarship search and application platform.

Corporate and financial

Navient’s mission is to enhance the financial success of its customers by delivering innovative solutions and insights with compassion and personalized service.

Jack Remondi is the CEO of Navient and has written[17] and spoken about recommendations to improve the student loan program.

Business Processing Services

Navient is a leading provider of workflow processing, customer contact and revenue cycle optimization solutions in healthcare, and government.

Consumer Lending

Navient’s subsidiary, Earnest, offers various educational loan products, and is a financial partner to students throughout the entire student journey, from providing refinancing options for people interested in a simplified loan management experience, to providing financing for students attending school or to cover tuitions that exceed government lending caps.[18]

Student Loan Servicing

Navient exited its role as a servicer for the Department of Education, transitioning its contract to Maximus.[19] Today, Navient continues to provide its customers with loan management services for private and legacy FFELP student loans that it services.

Financial

Navient is a publicly held company and trades on the Nasdaq stock exchange under the ticker symbol NAVI.[20] Navient is a member of the S&P 1500 composite, within the S&P 400.[2]

Navient’s endeavors are commonly funded through the capital markets; Navient sponsors unsecured corporate debt and asset-backed securities (ABS) programs.[21] Historically, Navient ranks amongst the top 20 sponsors of ABS backed by unsecured consumer loans, issued through securitization trusts.

Navient engages nationally recognized securities ratings organizations to assess and rate its bond programs; Moody’s, S&P, and Fitch furnish credit ratings for its unsecured bond program, while its securitization trusts are rated across the three organizations along with DBRS and Kroll.

Navient holds the largest commercial portfolio of education loans.[22] Its portfolio of education loans is composed of private education loans, refinanced education loans, and federally-guaranteed loans made under the FFELP. Most of its portfolio is encumbered within securitization trusts.

Philanthropy

The Navient Community Fund[23] gives back to the communities where employees live and work via grants from the Navient Community Fund of the Delaware Community Foundation. The fund supports organizations that address the root causes that limit financial success for all Americans.

Elevate

Through Navient’s Elevate program, eligible employees are granted up to four hours of paid time off per month, including travel if necessary, to volunteer for a company-supported nonprofit organization.

Boys and Girls Clubs of America

Since 2021, Navient has partnered with Boys & Girls Clubs of America (BGCA) to help young people and their families access career and college planning resources. The partnership, which builds upon Navient's inclusion, diversity, and equity efforts, is focused on three key topics:

Roadtrip Nation "Roadmap to Careers" Tool

Navient's support enabled BGCA to bring a new career exploration tool to Boys & Girls Club members. In partnership with Roadtrip Nation, "Roadmap to Careers" allows teens to build a roadmap to their future by answering questions about their interests and passions and learning about career opportunities that align to those interests. Teens are matched with stories and content from professionals who pursued similar interests in their careers. The tool also helps teens understand the education and training needed to support the careers they are exploring. Navient has curated a hub of resources that helps Club teens learn more about exploring and paying for college, available through the MyFuture platform.

Diplomas to Degrees Digitization

Diplomas to Degrees (d2D) is an existing college readiness program that provides a range of services to guide Club members as they work toward high school graduation, prepare for post-secondary education, and ultimately grow their career success. The Navient partnership helped fund the creation of a new digital d2D module more focused on how to plan and pay for college. This digital module will be particularly impactful given the impact COVID-19 has had on Boys & Girls Clubs' ability to be in-person. The development of the new platform module was a collaboration between BGCA and Navient in identifying which curriculum activities would serve teens best in a digital format.

Employee Engagement & Volunteerism

By offering paid time off to volunteer, Navient encourages its employees to take the time to impact their communities where their help is needed. As part of their partnership, Navient is working with Boys & Girls Clubs across the country to develop an employee engagement platform that will leverage relationships with local Clubs to impact youth in the communities in which they live and work.

Lawsuits, investigations, settlements, and controversies

On May 28, 2015, the United States Department of Justice announced that nearly 78,000 military service members would begin receiving $60 million in compensation for being charged excess interest on their student loans by Navient.[24] The company opted for this settlement to resolve the federal government’s lawsuit alleging the company's violation of the rights of service members eligible for benefits and protections under the Service Members Civil Relief Act (SCRA).[25]

On or about January 18, 2017 the CFPB filed a complaint against Navient in the United States District Court for the Middle District of Pennsylvania alleging, among other claims, violations of the Fair Credit Reporting Act and Fair Debt Collection Act.[26] It alleged that Navient "systematically and illegally [failed] borrowers at every stage of repayment" with "abusive interest charges, hurting disabled military veterans by making inaccurate reports to credit companies about them and making repayments harder than necessary."[27]

The company released a public statement[28] and fact sheet[29] denying the allegations and calling them politically motivated and harmful to borrowers.

In 2022, Navient entered into a $1.85 billion settlement to resolve lawsuits brought by 39 states and the District of Columbia, which included $1.7 billion in loan cancellations and $95 million in payouts.[30]

Navient released a public statement[31] and fact sheet[32] announcing a successful resolution of legal matters with state attorneys general.

Subsidiaries
  • Duncan Solutions
  • Municipal Services Bureau (MSB)
  • Navient BPO (Business Process Outsourcing)
  • Navient Portfolio Management
  • Pioneer Credit Recovery, Inc.
  • Xtend Healthcare

See also

References
  1. https://navientcorporation.gcs-web.com/static-files/e18886c8-f539-4b86-abbe-aadb8aee5d45. {{cite web}}: Missing or empty |title= (help)
  2. Form 10-K for Navient Corp filed 02/24/2023:https://navientcorporation.gcs-web.com/static-files/0f6d6dd0-0777-4f46-b7bc-79a6cdac7a51
  3. Watkins, Zina L.; Berry, Carla (2008). Congressional Liaison Offices. Nova Science Publishers. p. 44. ISBN 978-1-60456-872-1.
  4. Code of Federal Regulations, Title 31, Money and Finance: Treasury, Pt. 200-499, Revised As of July 1 2012. Washington, D.C.: Government Printing Office. 2012. p. 368. ISBN 978-0-16-091163-7.
  5. Code of Federal Regulations. Washington, D.C.: U.S. General Services Administration. 2000. p. 336.
  6. "Lessons Learned From The Privatization of Sallie Mae" (PDF). U.S. Department of Treasury.
  7. Babyak, Stephanie; Glickman, Jane. "U.S. Department of Education Expands Its Student Loan Servicing Capacity". ed.gov. U.S. Department of Education. Retrieved June 17, 2009.
  8. Weise, Karen (May 29, 2013). "Why Sallie Mae Is Splitting in Two". Bloomberg.
  9. "Sallie Mae Splits In Two, Names New Loan Servicing Unit 'Navient'". www.insidehighered.com. Inside Higher Education. February 26, 2014. Retrieved March 25, 2019.
  10. "Navient borrowers: Meet your new student loan servicer". Fortune. Retrieved March 29, 2023.
  11. "Boardroom Gender Diversity Directory". 2020 Women on Boards. Archived from the original on May 10, 2017.
  12. MyChesCo (November 2, 2022). "Navient Receives Eighth Champion of Board Diversity Recognition by The Forum of Executive Women". MyChesCo. p. 1. Retrieved March 28, 2023.
  13. Goss, Scott (June 23, 2015). "Navient earns award for diverse governing board". delawareonline. The News Journal. Retrieved March 25, 2019.
  14. Editorial, DBT (January 21, 2020). "Three Del. companies get perfect scores for LGBTQ-inclusive workplaces". Delaware Business Times. p. 1. Retrieved March 28, 2023.
  15. Employers, Military Friendly (2023). "2023 Military Friendly Employers". Military Friendly. Retrieved March 28, 2023.
  16. Military Spouse, Team (2023). "2022 Military Spouse Friendly Employers". Military Spouse. p. 1. Retrieved March 28, 2023.
  17. Remondi, Jack (October 6, 2015). "Smarter student loans: A game plan". Politico. Retrieved August 1, 2018.
  18. Follman, Ali (March 21, 2023). "Earnest Student Loans Review". U.S. News. p. 1. Retrieved March 28, 2023.
  19. Kantrowitz, Mark (October 20, 2021). "Maximus To Replace Navient As Student Loan Servicer". Forbes. Retrieved October 20, 2021.
  20. "Navient Corporation Dividend Date & History". NASDAQ.com. Retrieved March 25, 2019.
  21. "SLABS: How to make money off someone else's private student loan". July 19, 2015. Retrieved July 13, 2016.
  22. "Form 10-K Navient Corporate 2015" (PDF). Navient.com. Navient.
  23. ACA International (July 6, 2022). "Navient Funds Delaware Tech's Veterans Resource Center". ACA International. p. 1. Retrieved March 29, 2023.
  24. "Details of the Sallie Mae SCRA Settlement With the U.S. Department of Justice". May 14, 2015. Retrieved July 13, 2016.
  25. "Nearly 78,000 Service Members to Begin Receiving $60 Million Under Department of Justice Settlement with Navient for Overcharging on Student Loans". www.justice.gov. May 28, 2015. Retrieved June 1, 2022.
  26. "Case 3:17-cv-00101-RDM Document 1 Filed 01/18/17" (PDF). Retrieved January 18, 2017.
  27. Chalabi, Mona (August 1, 2018). "Deceased and still in debt: the student loans that don't get forgiven". The Guardian.
  28. "Navient announces successful resolution of legal matters with state attorneys general". Navient.com. January 13, 2022.
  29. "Fact Sheet on Legal Actions" (PDF). Retrieved January 18, 2017.
  30. Douglas-Gabriel, Danielle (January 13, 2022). "Navient reaches $1.85 billion settlement over student loan practices". The Washington Post. Retrieved January 14, 2022.
  31. Navient (January 13, 2022). "Navient announces successful resolution of legal matters with state attorneys general". news.navient.com. Retrieved April 3, 2023.
  32. Navient (January 13, 2022). "Frequently Asked Questions: Navient Resolution of Legal Matters with State Attorneys General". news.navient.com. Retrieved April 3, 2023.
  • Official website
  • Navient Login
  • Business data for Navient Corporation:
  • Navient Corporation recipient profile on USAspending.gov
  • Student Loans on YouTube published on Feb 24, 2019 Patriot Act with Hasan Minhaj
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