Navient Modifies Bank Fees ✅

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I decided to make this video after going to the bank today to close out my accounts and trying to figure out what I was going to do. In the future, if you have any advice on how to improve my financial situation, they get $0! lol. But if you have a good idea, please let me know!

Navient changes bank fees.

The banks were forced to change their fees because they didn’t have enough money coming in. In 2015, financial institutions had to pay $7 billion in settlements over deceptive student loan practices. Students who borrowed between 2010 and 2014 were charged excessive fees for not being able to make minimum monthly payments on time. Because of these charges, people often default on their loans. Banks couldn’t send students to collections, unless they filed bankruptcy. Many people believe that the banks just wanted to get out of having to pay back billions. However, many of these people don’t know that they could’ve gotten rid of their payments without going bankrupt.

What did Navient change?

In January 2017, Navient announced that they would no longer charge fees if borrowers failed to make minimum payments on time. Instead of charging borrowers fees, they agreed to give them a grace period to catch-up. Borrowers still have to pay interest, though, but at least they won’t face any extra fees.

Why do banks do this?

Banks realized that they owed hundreds of millions of dollars in uncollected debts. So they decided to do something about it. Unfortunately, banks weren’t willing to pay back the debt because they were afraid that people wouldn’t want to borrow anymore. So they decided to offer consumers a solution where they wouldn’t need to pay back the loans. This way, everyone wins and nobody loses.

How does Navient’s new policy affect students?

Students who took out federal loans before 2016 may have been charged higher fees than they should have been. If they signed up for direct repayment programs, they probably got a lower APR (interest rate). And people who took out private loans shouldn’t be affected by this change.

What Navient didn’t do

People are upset that Navient’s new policy doesn’t go after the companies that issued bad loans to begin with. Navient said that they didn’t negotiate directly with those companies. Instead, they focused their attention on negotiating with the government.

Navient Modifies Bank Fees

In 2014, Navient was given permission by the Consumer Financial Protection Bureau (CFPB) to increase bank fees by nearly $36 billion over five years. The fee increases were approved in 2013, but they weren’t implemented until the following year, according to the CFPB.

While these changes have increased interest rates for millions of people, some may not know how much their account could cost them.

According to the CFPB, the average student loan borrower paid $1159 per month in 2016. That means the average borrower would pay $14,496 in interest alone over five years if the new rate had been in place since July 1st, 2017.

These fees will only continue to rise. A recent report shows that the number of students defaulting on their loans will double in the coming decade.

Your income will likely decrease if your student loan payments go delinquent. Many people have reported dropping out of school, moving back home, and even taking jobs just to make ends meet.

The CFPB says the government should step in and regulate banking fees. However, many lawmakers don’t agree.

Senator Sherrod Brown (D-OH) thinks banks need to provide better service to customers at lower costs. He said, “The financial industry continues to put profits ahead of serving customers.”

Other politicians believe the government shouldn’t get involved at all. Representative Maxine Waters (D-CA) believes that banks provide enough services for free. She said, “I do not think we should be regulating the price of mortgage refinancing or student loans.”

Congressman David Cicilline (D-RI) wants to change the laws regarding federal regulations so that borrowers won’t face these kinds of fees. He plans to introduce legislation that would allow students and consumers to sue banks for any fees that are unjustified or excessive.

Banks say the move is necessary to protect themselves from companies like Navient. According to the Wall Street Journal, banks worry about losing market share to nonbank lenders.

Navient Modifies Bank Fees

This video explains how Navient changes bank fees. These types of changes are illegal and unfair. Navient cannot change their policies any longer. This is not fair to customers who have been abused. Please share this information with everyone that you know. There are many people that do not know about these kinds of actions by companies. I’ve already shared news article 1. ——–

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