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Navient is a student loan company that offers consolidation services for students who have defaulted on their loans. Many people have experienced problems with Navient’s website, however, they have been able to successfully file for consolidations without issue. If you need help filing for a consolidation, you should contact the Department of Education at 1-800-DOE-SUND (1-800-342-2829) or visit their website at www.ed.gov/about/offices/list/oig/navient/. 2. How do I consolidate my Navient loan?
To start off, you should know what type of consolidation service Navient provides. There are three types of consolidation options offered by Navient: Standard, Extended, and Graduated Repayment. Each option requires different levels of paperwork, payment amounts, and time frames. A summary of the differences between each option can be seen below. You may also want to look at the sample documents that follow for further details.
This consolidation option does not require any additional paperwork beyond the initial application. However, it only offers a standard repayment plan, which means that you will pay over a longer period of time than if you chose the extended or graduated plans.
The second option requires some additional paperwork, including copies of your income tax returns, proof of employment, an updated credit report, and documentation related to your total debt load. In addition to these requirements, you will need to make payments for 18 months before being eligible for a reduced interest rate. Even though the paperwork is more extensive, it offers a lower monthly payment amount compared to the standard consolidation.
With the third option, you will apply to extend the length of your original term for 15 years, along with making a series of smaller monthly payments. Once you complete the full course of payments you will receive a final principal reduction of 30 percent. After completing the entire installment plan, you will then begin making standard payments again.
You will need the following documents to file your application:
Your Social Security Number – You need this number to register for the online application
Your Driver’s License Number – You need this number to verify your identity
The Navient student loan consolidation program offers various repayment plans to help borrowers manage their monthly payments. There are two types of loans: federal loans (including direct subsidized and unsubsidized Stafford loans) and private student loans.
To qualify for a loan consolidation, you need to have at least $50 of outstanding balance on each type of loan. You also need to make at least 12 monthly payment on your current loans, and meet certain income requirements. Your interest rate may change during your loan’s term. A consolidation may lower your monthly payment, extend the time for paying off your debt, or both.
Borrowers who are eligible for a loan consolidation must meet an income limit set by the Department of Education. If your total household income exceeds 250% of the poverty line, then you might not be able to apply for a consolidation. 3. How Does It Work?
After you complete the application, the lender sends you a letter confirming whether you qualified for the consolidation. If you were successful, you receive an official letter stating that you are enrolled in the consolidation plan. You then have 30 days to pay back the first loan with the consolidated loan.
Once you repay your original loans, you should make your regular monthly payments on the new loan. Once you do, you’ll have paid off your loans faster than if you had only repaid your original loans.
If you default on the new loan, your previous loans could remain active. You continue making payments until they’re fully satisfied, even after you’ve taken out the new loans. Then, the remaining balances on your old loans are canceled.
Can I Refinance My Loan?
You may refinance your existing student loans if you want. But you must understand the terms and conditions of any refinancing agreement before signing. You should read disclosure statements carefully and compare the fees charged by different lenders.
If your loan was issued under the Federal Family Educational Loan Program (FFELP), you may be eligible for a consolidation without having to reapply. However, before you sign anything, check with your loan servicer to confirm.
When it comes to refinancing, some lenders may charge higher interest rates. And others may impose additional fees. Ask about these costs when you consider refinancing.
What Are The Benefits Of Refinancing?
How to consolidate student loans?
To make student loan consolidation easier, the government created a website where anyone can go online and compare different loan options. Before applying for any loan, students should first check their credit report to ensure they have no past defaults or late payments. Students can also request a copy of their credit report at www.annualcreditreport.com. If a default or late payment is found, then the student should immediately contact his/her lender(s) and try to pay off the debt before consolidating.
How much money does one need to consolidate student loans?
A student may easily qualify for a consolidation loan if he/she meets these minimum requirements: (a) current monthly income of $5,000; (b) total monthly student loan debt of $35,000; and (c) a 10% down payment.
What happens after I consolidate my student loans?
Once you get approved, you will receive notification that you received a consolidation offer. You will receive two documents via mail: (a) a Promissory Note describing the terms of your loan agreement; and (b) a Loan Estimate. Your promissory note and Loan Estimate will have information about how much you will end up paying in interest and fees, what your monthly payments will be, and the length of time until your balance is completely paid off.
How do I apply for student loan consolidation?
You can apply for student loan consolidation at a national site or directly with your lender. Most lenders require a co-signer for any consolidation loan, unless a borrower has good credit. Lenders often charge a fee to cover costs associated with processing the application.
Why should I choose student loan consolidation over a private loan?
Private student loans are not federally insured and therefore carry higher rates than federal loans. Private student loans have additional criteria for approval and longer repayment terms. A private loan may also restrict the type of schools you can attend.
Will I still own my car after I consolidate student loans?
Yes! Under some circumstances, you may even be able to refinance your auto loan into a lower rate using your existing car . However, it is highly recommended that you consult with a professional financial advisor who specializes in this field.
Can I use my 401k funds to pay off my student loans?
In most cases, yes. However, you must first talk to your employer’s plan administrator to determine whether or not they allow contributions into the 401K loan. Also, it is possible that you may have to repay your loan out of pocket depending on the amount of your contribution.
The federal government offers student loan consolidation. When a student loans are consolidated they are grouped together into one loan with a single payment. In order to consolidate student loans, the borrower must have at least $10,000 unsecured debt. Lenders may require borrowers to first pay off any private student loan before consolidating. Borrowers should seek out a student loan lender that specializes in providing education loans. The U.S. Department of Education provides information about the various types of student loan programs. These include subsidized and unsubsidized Stafford loans, PLUS loans, and Perkins loans. Students should check with their schools to determine if they qualify for any financial aid. Federal Direct Stafford Loans offer low fixed rates while subsidized Stafford Loans have lower interest rates.
Sallie Mae Loan Modification
If you find yourself drowning in payments of your student loans, then you may want to try a loan modification. A loan modification is when the monthly payment amount is lowered either temporarily or permanently. You can apply online directly through the company. There are many different companies who offer help in modifying student loans. One way is to request a repayment plan adjustment from your current servicer. If you do not get an answer within 30 days of submitting your request, contact the federal department of education. You might need to submit additional documentation in order to prove that you cannot afford the payment. You also might consider filing for bankruptcy. However, make sure to consult an attorney before making any major decisions.
Federal Income Tax Refunds
You might be able to claim a tax deduction for paying back your student loans. If you took out student loans to finance your education, you could use them as a tax writeoff. If you paid them off completely, you would receive a refund. To claim a tax deduction for student loan payments, file an IRS Form 1098-T.
Another option for getting out of debt is to take out a payday advance. Instead of using your savings, you would borrow money from a payday lender. The problem with these loans is that you are charged extremely high fees. Additionally, you will likely have to pay interest on top of the initial amount borrowed. The average APR for a payday loan is between 400% and 600%. If you cannot pay the loan back on time, then you are going to end up being charged late fees. You can avoid these charges if you opt for a cash advance instead.
Credit Card Debt
Credit card debt can be tricky to deal with. Since credit cards are considered consumer debts, you will generally have to pay interest on the balance even after you pay the minimum payment due on time each month. Your best bet is to pay off your entire balance every month. Otherwise, you risk incurring interest fees and penalties. You can pay off your credit card debt by setting aside some of your monthly income. Many people use the automatic payment feature on their credit card statement to set aside a portion of their payment. That way, they don’t actually miss out on any money.
In addition to looking for ways to reduce your debt load, you might consider filing for bankruptcy protection. Bankruptcy is a legal proceeding where you can discharge your legal obligations. You might be eligible for relief under chapter 13 of the bankruptcy code. While bankruptcy can be difficult to navigate, you should contact an experienced bankruptcy attorney for assistance.
I was just reading about Navient consolidating student loans and I thought this would make a good video. How many people actually read these small print agreements? If you don’t pay your student loan on time you end up paying interest until payoff day (which could take 10 years) plus fees. Many people find themselves in default just trying to survive. In today’s society students graduate $40K-$50K in debt and have no job prospects. Remember, school isn’t free anymore.
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