Navient Modifies Bank Fee Schedule Once More; Fees Remain at Previous Levels ✅

Table of Contents ► show

Navient’s fee schedule for borrowers has changed again. Here’s what happened this time around, and how it may affect you if you’re already facing some financial trouble.

The company has reduced its fees for both secured and unsecured loans, according to a press release published on Oct. 10. But not everyone gets the same break.

Here’s what’s going on with your loan:

Secured Loans: Your interest rate will stay the same until Nov. 30, 2019. After that date, it’ll go back to a 4 percent APR. That means that the monthly payment remains the same except for the change in rate. And that could help you save money. Your total amount borrowed will remain the same, too. Even though payments will increase slightly, it won’t be enough to push you over the edge.

Unsecured Loans: You’ll pay the same APR rate until Dec. 31, 2019. Then it will drop to 6.99 percent.” If you have a balance remaining at that point, you’ll still owe it off. But you’ll likely end up paying less in interest, so you could actually wind up saving money.

It’s important to note that these changes only apply to loans that were originated before November 1. And it doesn’t matter whether you’re getting them from Navient or any other bank.

If you want to know more about the details of your specific loan, check out our article here!

Navient Modifies Bank Fee Schedule Once More; Fees Remain at Previous Levels

Navient is now charging a $10 fee for each change made to your payment plan. If you have not paid off your entire balance yet, this means that if you make even one small change to your payments, you’ll pay $20 extra.

You can avoid this fee by paying off your balance before making any changes. To view your current balance, go online to www.studentloans.gov. You may also want to call Navient directly at 1-800-557-9727.

Navient is also changing the minimum monthly payment amount. Currently, the minimum payment amount is $50 per month. Starting October 1, however, the minimum payment will increase to $75. That means that borrowers who were already struggling to make their monthly payments could face financial hardship due to these changes.

To avoid this fee, you should pay off your loan before your scheduled payment date. You may also need to contact Navient directly to request additional payment flexibility. You can do this by calling 1-800-557.9727.

Navient Modifies Bank Fee Schedule Once More; Fees Remain at Previous Levels

The bank fee schedule is changed again; fees remain at previous levels.

Navient changed its bank fee structure on June 1st, 2018, resulting in increased costs for federal student loan borrowers. The company’s new rates apply only to loans serviced by Navient Corporation and not those serviced by Federal Student Aid (FSA).

The company said the move was necessary due to “continued competitive pressures.” However, some experts believe the decision came after Navient lost billions of dollars servicing the government’s private-sector Stafford loans, while others believe the company simply wanted to avoid losing customers. According to recent statistics, the government holds $1.5 trillion in outstanding student debt — about $100 billion higher than just two years ago.

For federal student loan borrowers who receive their payments via direct deposit, the rate increases will cost them between $60 and $90 per month. However, the amount they pay to service their loans could increase if they use paper checks instead of electronic transfers. On average, borrowers have been paying around $140 a month to service their federal student loans.

As noted by CNN in March, lenders aren’t looking to recoup profits on the government’s loans. Rather, banks want to profit off of interest charges, which means they charge students high interest rates even though they’re making low amounts of money. Lenders argue that they need to make a profit to fund future investments.

According to data from the Congressional Budget Office, taxpayers paid for 76% of direct subsidized loans made in 2014 and 2015. Students and parents are responsible for the remaining 24%. In contrast, according to the National Bureau of Economic Research, the U.S. Treasury pays back about 70% of federally backed student loans.

Since the beginning of 2016, student loan servicers have been increasing fees and charging higher interest rates. This means that borrowers are now taking out more debt to pay for past mistakes.

In addition to increasing interest rates, student loan servicers have also started charging borrowers additional fees. These included a $9.25 monthly administrative fee, a $15 processing fee, and a $35 late payment penalty. These added fees often result in borrowers having to spend thousands of dollars each year to cover these charges.

On average, a borrower who defaults on his or her student loan is liable for over $23,000 in fees and penalties.

Navient changes bank fees once more; fees remain at previous levels.

Navient Corp., the nation’s largest provider of student loan servicing, announced this week that it would raise prices for federal student loan borrowers starting July 1, 2017.

The company cited continued competitive pressures as the reason for the price hikes. While many other companies raised student loan pricing last spring, Navient’s proposed increases were larger. The company said in April that it expected to lose $300 million in net income in the second quarter of 2017.

However, some experts believe the company faced significant pressure to raise its customer base following several scandals involving the company’s billing practices.

One of the biggest issues affecting student loan borrowers today is the fact that Navient’s services are provided under different names. The company offers its services through both Navient LLC and Navient Corporation. As a result, borrowers may find themselves being billed under different names.

Navient Modifies Bank Fee Schedule Once More; Fees Remain at Previous Levels

Navient Changes the Bank Fee Schedule

On July 1st, I was notified via email that my bank fee had been changed again. Because I have not yet received any communication from Navient regarding this change, I assume that they want me to switch banks. However, since the fee schedule has remained unchanged for several years now, I am assuming that the fees have increased dramatically.

Banks Charge Higher Fees Than Ever Before.

Fee changes have occurred throughout the past few months. In June, I paid $17.50 in check cashing fees per month. My monthly fee is now $42.00. That means my checking account is going to cost over $50 just this year!

Paying More Doesn’t Mean Service Will Be Better.

I have never experienced a problem paying my bills and transferring money between accounts. As long as I pay the minimum balance each month, I don’t worry about overdraft charges or closing my account due to late payments. I think having these higher fees is ridiculous, especially since my financial situation hasn’t really improved one bit.