Agreement between Navient and Members of American Federation of Teachers to enhance borrower education on Public Service Loan Forgiveness receives final approval

Rhea-AI Summary

Navient (Nasdaq: NAVI) has settled a lawsuit with the American Federation of Teachers, enhancing public service workers' access to the Public Service Loan Forgiveness program. The U.S. District Court approved the agreement, which includes a $2.25 million contribution to a nonprofit for education and counseling services. Enhancements will also be implemented in Navient's call center to improve borrower awareness and support. This settlement aims to simplify the complex loan forgiveness process established in 2007.

Positive

• Settlement enhances borrower access to Public Service Loan Forgiveness program.
• Navient contributes $2.25 million for educational support to public service workers.
• Call center improvements aimed at increasing awareness of loan forgiveness options.

Negative

• None.

WILMINGTON, Del., Oct. 12, 2020 (GLOBE NEWSWIRE) -- Navient (Nasdaq: NAVI), a leader in education loan management and business processing solutions, and members of the American Federation of Teachers, representing public service workers, agreed to a settlement that was approved by a U.S. District Court today.

Through the agreement, Navient will help more people learn about the government’s Public Service Loan Forgiveness program, including by implementing enhancements in its call center. These enhancements, along with a contribution of $2.25 million to a nonprofit organization that will provide education and student loan counseling to public service workers, resolve a lawsuit originally filed by AFT members.

“We understand that the federal process for student loan forgiveness can be complex,” said Lisa Stashik, Navient vice president of the Office of the Customer Experience. “We want to do what we can as a non-federal organization to implement and support critical resources for our customers, which is why we are collaborating with members of the American Federation of Teachers, through this agreement, on the important mission of improving borrower awareness, education and access to successful repayment and loan forgiveness options.”

Public Service Loan Forgiveness was established by the federal government in 2007 and enables people employed by government and certain nonprofit organizations to make payments on government Direct Loans based on their income. After 10 years of on-time payments, under certain repayment plans, any remaining loan balance is forgiven. Many borrowers have found the government’s Public Service Loan Forgiveness process complex, due to the government’s detailed requirements regarding eligible types of loans and payment plans.

About Navient
Navient (Nasdaq: NAVI) is a leading provider of education loan management and business processing solutions for education, healthcare, and government clients at the federal, state, and local levels. Navient helps clients and millions of Americans achieve success through technology-enabled financing, services, and support. Learn more at Navient.com.

Contact:
Media: Paul Hartwick, 302-283-4026, paul.hartwick@navient.com

Investors:
Nathan Rutledge, 703-984-6801, nathan.rutledge@navient.com

FAQ

What is the significance of Navient's settlement with the American Federation of Teachers?

The settlement enhances public service workers' access to the Public Service Loan Forgiveness program and includes financial contributions for educational support.

How much has Navient agreed to contribute for loan counseling services?

Navient has agreed to contribute $2.25 million to a nonprofit organization for education and counseling services.

What changes will Navient implement to improve the loan forgiveness process?

Navient will enhance its call center to help borrowers better understand the Public Service Loan Forgiveness program.

What is the Public Service Loan Forgiveness program?

The program allows government and certain nonprofit employees to have their remaining student loan balance forgiven after 10 years of qualifying payments.

When was the Public Service Loan Forgiveness program established?

The Public Service Loan Forgiveness program was established in 2007.