Navient is a US company based in Wilmington, Delaware, whose operations include serving and collecting student loans. Managing nearly $ 300 billion in student loans to more than 12 million subscribers, the company was formed in 2014 by dividing Sallie Mae into two different entities, Sallie Mae Bank and Navient. Navient employs 6,000 people in offices across the US.
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History
Navient was founded in 1973 as a Government-Sponsored Enterprise (GSE) called the Student Loan Marketing Association (dubbed Sallie Mae). The company was created by Congress to support student loan programs established by the Higher Education Act of 1965.
In 2004, the GSE Sallie Mae charter was dissolved and became a private sector company with an independent board.
The US Department of Education chose Sallie Mae in 2009 to serve a federal loan on his behalf.
In 2010, Congress passed the 2010 Education Health and Reconciliation Act, which eliminated a federally guaranteed loan program known as the Federal Family Education Borrowing Program (FFELP), in which banks and companies such as Sallie Mae lend to federal-backed students ensure. As a result, effective July 1, 2010, all federal loans are derived directly by the US Department of Education.
The company announced in 2013 its plan to split into two public companies - an education loan management business to be launched under a new name - Navient - and the consumer banking business, which retains the name Sallie Mae. Spin-off finished on April 30, 2014.
In 2015, Navient withdrew the recognition of 2020 Women on Boards, the New York Women's Forum, and the New York Stock Exchange's Governance Services for gender diversity on the board of directors.
The company acquired asset recovery and business process outsourcing company, Gila LLC, and health care payments company Xtend Healthcare.
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Company and finance
Navient trading on the Nasdaq stock exchange under the ticker symbol NAVI. Navient holds the largest portfolio of educational or guaranteed credit insurance under the Federal Family Education Loan Program, as well as the largest portfolio of Private Education Loans.
In 2014, Moody's downgraded unsecured senior debt and the family of Navient to Ba3 due to high earnings, cash flow, equity and leverage losses.
Executive leadership
Jack Remondi is CEO of Navient and has written and talked about recommendations to improve student loan programs.
Political influence
In 2016, PAC Navient donated $ 30,000 to the Republican National Committee and $ 20,000 to the Democratic National Committee. PAC has also been donated to the Congress Black Caucus PAC and Team Ryan.
SLABS
Navient funded most of its operations by producing loan assets supported by student loans: combining loans and selling them to investors as financial instruments. SLABS is rated by bond rating agencies such as Moody's Investor Services and Fitch Ratings. The value of SLABS has decreased as more students choose income-based payment plans.
Until June 2016, most SLAB tranches continue to be lowered.
Legal, investigation, settlement and controversy
In August 2015, the Consumer Financial Protection Bureau, which has been investigating the company for nearly two years, sent a letter to Navient to executives that the agency's enforcement staff had found enough evidence to indicate the company violated the consumer protection law.
On May 28, 2015, the United States Department of Justice announced that nearly 78,000 military members would begin receiving $ 60 million in compensation because of overcharged interest on their student loans by Navient.
On March 14, 2016, Sen. Elizabeth Warren gave a speech at the Navient Congress service qualification and the subsequent contract award by the Ministry of Education as an outrageous failure. Warren recommends "a total reform of student loan services to ensure that no more Navient calamities ever occur".
In June 2016, shareholders filed a class action lawsuit against Navient. The plaintiffs include Chicago police officers and retired city employees in Providence, Rhode Island.
On July 5, 2016, Guy Micciche filed a complaint against Navient in the US District Court alleging that the debt collector contacted the plaintiff, several times, on his cell phone using an automated calling system. In the complaint, the plaintiff alleges that he told Navient to stop calling him, but the company persisted.
On 18 January 2017, the CFPB filed a complaint against Navient in the United States District Court for the Central District of Pennsylvania accusing the violation of the Fair Credit Reporting Act and the Fair Debt Billing Act. The company released public statements and fact sheets deny the allegations and call them politically motivated and harmful to borrowers.
Student loan resistance group
Student Loan Justice is one of the groups who have fought Navient by calling for bankruptcy laws to re-enter student loan debt.
See also
- FAFSA
- Federal Student Help
- FFELP
- Sallie Mae
- US. Department of Education
- Jubilee Debt Coalition
- US Funds
References
External links
- Official website
Source of the article : Wikipedia
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