Loan Servicing | Navient (2024)

About Delinquency

Delinquency occurs when you don't make your loan payments on time. Your loan is considered delinquent when payment has not been made by the day it is due.

Being delinquent on your loans may be a serious situation that might lead to serious consequences to you as the borrower or cosigner.

Consequences of delinquency may include:

• Delinquency can be reported to consumer reporting agencies, which may impact your credit score.

• Increase in your loan balance may occur with the assessment of late fees and returned payment fees, if applicable.

• Potential loss of your loan benefits/repayment incentives.

About Default

Student loans are considered in default depending on the type of loan:

• Direct and FFELP – Typically when the loan reaches 270 days delinquent.

• Health Education Assistance Loan (HEAL) – When the loan reaches 120 days delinquent.

• Private Loans – Refer to your promissory note.

Defaulting on your federal or private loans may result in serious consequences to you as the borrower or cosigner.

Consequences of default may include:

Direct, FFELP, and HEAL Loans—

• The loan will be transferred to the U.S. Department of Education or guarantor (as applicable), who can report your default to all nationwide consumer reporting agencies and may impact your credit score.

• The entire balance is immediately due and your account may be assigned to a collection agency.

• Your student loan debt may increase because of late fees, capitalized interest, collection fees, and other costs associated with the collection process.

• The U.S. Department of Education or guarantor (as applicable) may garnish your wages or offset your state and federal tax refunds and other payments made by the federal government to you. This means they can take your federal and state tax refunds or a portion of your disposable income.

• You lose eligibility for additional federal student aid and repayment options such as Income-Driven Repayment (IDR) plans, deferment, and forbearance.

• The U.S. Department of Education or guarantor can take other legal action against you.

Private Loans—

• Immediate Full Repayment - After default, the entire loan balance will become due immediately rather than just the monthly payments that you have missed.

• Additional Credit Bureau Reporting - The charge-off of your loan may be reported to the consumer reporting agencies. The charge-off and any prior delinquency may appear on your credit report for up to 7 years from when the delinquency began.

• Navient Recovery Referral - Your defaulted loan may be assigned to Navient's Recovery Department in order to resolve the balance.

• Collection Agency Referral - Your student loan may be referred to a collections agency. While at the agency, collections activities will take place to recover your balance in full and your loan will continue to accrue interest.

• Attorney Referral - Loans not resolved by Navient or a collection agency may be reviewed for referral to a collection attorney licensed to practice law in your state. If legal action is filed against you, Navient will seek to obtain recovery of all amounts owed and reimbursem*nt of our expense as allowed by law.