Q: How do I lower my Navient student loan payment?

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Stanley tate

Student Loan Lawyer

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You can lower your monthly payment amounts with Navient on your federal student loans by enrolling in an income-driven repayment plan. Those IDR plans include the:

  • Income-Based Repayment Plan (IBR)
  • Pay As You Earn Plan (PAYE)
  • Revised Pay As You Earn Plan (REPAYE)
  • Income-Contingent Repayment Plan (ICR)

You're payment amount under each of these plans is based on your family size, loan balance, and income. Your financial situation (medical bills, divorce, etc.) does not factor into your payment amount.

For private student loans, you may be eligible to make monthly payments under an Interest Rate Reduction Program (IRR) or an Interest-Only Payment Plan. Unfortunately, private student loans do not offer payment plans based on your income.

Typically, the lower payments you get for private loans are for a short repayment term maybe 6-18 months. You'll need to reapply once the term ends.

Click here to learn What Happens to My Student Loans if I Leave the Country?

How to lower student loan interest rate on Navient loans?

You can lower the interest rate on your federal student loans with Navient by enrolling in autopay.

By enrolling in autopay, your interest rate can be lowered by .25%. That's not much savings. But it's something.

There's no other way for your loan servicer to lower the interest rate on federal loans. The federal government does not offer ways to refinance for a lower rate. Consolidation will not lower your interest rate.

Meanwhile, for private student loans, Navient has, in the past, offered loan modifications.

Those loan modifications reduce the interest rate on your loan either temporarily or permanently.

Your eligibility for a loan modification depends on the terms in your promissory note or what your lender has authorized, or both.

Check your eligibility for these interest only repayment options by contacting Navient at 888-272-5543.

FYI, the payments you make under the IRR type plans, don't count towards getting your cosigner removed from the loan. To get your cosigner removed, you'll need to make the full monthly payments due.

Also, the interest-only plans do not negatively affect your credit score. So long as you make the payments as agreed, no negative information should be sent to your credit report.

Lastly, one other option to lower your your interest rate is to look into student loan refinancing with a different financial institution.

Click here to learn more about How to Consolidate Student Loans With Navient

Is Navient a federal loan or private loan?

Navient is a student loan servicer for both the federal government and private lenders. As a result, your Navient loan may be a federal loan or it may be a private loan. It may even be a commercial loan.

But what about if your loan used to be with Sallie Mae and is now with Navient?

In my experience, that loan is likely a federal student loan/commercial loan.

You can find out what type of loans you have by checking your online account with Navient.

When you login, check to see the names of the loans you have.

If you see names like:

  • Direct Loan
  • Direct Consolidation Loan
  • ​Subsidized Loan
  • Unsubsidized Loan
  • Parent Plus Loan
  • Federal Family Education Loan (FFELP Loans)

Those loans are all federal or commercial loans.

If you see names like Signature Loan or Tuition Answer Loan, those loans are private loans.

Another way to check whether the loan is federal or private is to see which payment plans your loans are eligible for.

Federal student loan borrowers are eligible for the following student loan repayment plans:

  • Standard Repayment Plan
  • Extended Repayment Plan
  • Graduated Repayment Plan
  • Income-Driven Repayment Plans (IDR)

Private student loans aren't eligible for those type of plans.

One final way to check whether your loan is federal or private is to use the Federal Student Aid website, studentaid.gov. Any loan listed on that website is a federal student loan.

Click here to learn How to Tell If Your Navient Loan is Federal or Private

Can I negotiate my student loan with Navient?

You may be able to negotiate a student loan settlement with Navient. To do so, your account myst be delinquent. That means you can't be in good standing. You can't be in a forbearance or a deferment. And you can't be in a rate reduction plan.

You have to miss payments before Navient, or any lender for that matter, will consider settlement offers.

There's no way around the delinquency/default requirement.

It doesn't matter if you live outside the country and are never moving back.

It doesn't matter if you're disabled.

It doesn't matter if you can't find a job and are near homeless.

Until you start missing payments, there's no way to negotiate a student loan settlement with Navient.

Of course, if you miss payments, late fees will be added to your balance. And that will cause your overall student loan debt to increase.

In my experience, your balance doesn't increase significantly during the settlement process (6-12 months on average).

Click here to read my Guide to Negotiating Student Loan Settlements

Also, by missing payments, Navient may sue you at some point. In my experience, Navient doesn't sue you immediately after defaulting. It's usually a few years.

Is Navient forgiving all student loans?

Navient is not forgiving all student loans for borrowers.

They do, however, participate in loan forgiveness programs authorized by the U.S. Department of Education.

Those loan programs include the Public Service Loan Forgiveness (PSLF) and the Teacher Loan Forgiveness Programs.

If you're trying to qualify for 10-year student loan forgiveness, you may need to look into loan consolidation to be eligible.

Click here to learn more about Navient Student Loan Forgiveness Programs

As for private student loans, Navient is not forgiving those. They have, however, as part of class action settlements, reduced or eliminated the loan balances for some borrowers.

Typically, if you qualify to have your loan balance reduced or eliminated, you'll receive notice in the mail. Sometimes, there'll be a website for you to register your information with to potentially be included in the class.

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Hey, I’m Tate.

I'm a student loan lawyer that helps people like you with their federal and private student loans wherever they live.

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