A Letter from Navient CEO Jack Remondi to Navient Shareholders
November 20 2018 - 9:59PM
Navient (Nasdaq:NAVI) released the following letter from Jack
Remondi, President and CEO, to company shareholders:
Today’s article by the Associated Press continues the practice
of ignoring facts to make false, sensational and harmful
accusations that discourage borrowers from working with their
servicers. Despite being in possession of the Federal Student Aid
(FSA) review and our account-by-account response, the article
repeated a series of false accusations that are not found in any
section of the review.
A full reading of the report, our responses included in the
report and comments provided by the U.S. Department of Education
clearly and unequivocally refute the accusations that Navient was
improperly steering borrowers. They also affirmatively conclude
that in those instances where forbearance was used, it was applied
appropriately.
According to a Department of Education statement on the
review:
|
…in approximately 9
percent of those calls, it was not clear whether Navient had
sufficiently discussed options with the borrower. In response to
FSA’s preliminary conclusions, Navient provided detailed
information about each of the calls at issue. Based on FSA’s review
of Navient’s responses and FSA’s independent review of Navient’s
overall performance, FSA has concluded that Navient is
substantially in compliance with its obligations. |
The article also claims that the CFPB and others did not possess
the report (though later it admits they did). In fact, the review
has been in the hands of the CFPB and state AGs for nearly a
year.
One of the main claims is that enrolling borrowers in
forbearance is an inappropriate and therefore deceptive practice.
This conclusion is deceptive in itself and shows a lack of
understanding of the different repayment options available to
borrowers and how forbearance can be both a proper and lower cost
option for borrowers. It also ignores the fact that the option of
forbearance was authorized by Congress and no senator has initiated
any bill to eliminate it as a valid option. A full reading of the
review and our response makes it clear that we discussed options
other than forbearance or that forbearance was the most appropriate
option choice for the borrower. Navient provided these details to
Senator Warren in a letter dated November 15, 2018.
The letter, which we are releasing at navient.com/legalfacts in
response to the Senator’s press release makes clear that the
accusations are false and misleading and are a blatant attempt to
discredit the good work of my 6,000-plus dedicated colleagues.
The Department of Education statement continued:
|
Program data indicated
that Navient’s overall use of forbearance was consistent with that
of other servicers, while the duration of forbearances for Navient
borrowers was actually among the lowest of the Department’s nine
servicers. Navient also had among the highest take-up rates for
income-driven repayment plans, as well as longer than average call
durations in comparison to all servicers. |
The federal loan programs offer over 50 different repayment
options. Some are designed for long-term challenges and others are
designed to address short-term challenges. Contrary to some views,
no single option is always best or always worst. It always depends
on the borrowers’ unique circumstances. The most expensive option
is doing nothing and allowing the account to become delinquent
and/or default. At Navient we help our customers select the option
that best fits their needs. The results are crystal clear,
borrowers serviced by Navient have the highest enrollment in
income-driven repayment programs of all comparable servicers and
are least likely to default.
We are proud of these industry leading results and I am proud of
the work our team does each and every day to assist borrowers. It
is deeply sad that these false accusations are spread without facts
to support them and, as a result, borrowers are discouraged from
engaging with their services. Nevertheless, we will continue to
provide quality service to help our customers succeed.
Sincerely,Jack Remondi
About NavientNavient (Nasdaq: NAVI) is a
leading provider of asset management and business processing
solutions for education, healthcare and government clients at the
federal, state and local levels. The company helps its clients and
millions of Americans achieve financial success through services
and support. Headquartered in Wilmington, Delaware, Navient employs
team members in western New York, northeastern Pennsylvania,
Indiana, Tennessee, Texas, Virginia, Wisconsin and other locations.
Learn more at navient.com.
Contact:
Media: Paul Hartwick, 302-283-4026,
paul.hartwick@navient.comNikki Lavoie, 302-283-4057,
nikki.lavoie@navient.com
Investors: Joe Fisher, 302-283-4075,
joe.fisher@navient.com
NAVICFNAVISL
Navient (NASDAQ:NAVI)
Historical Stock Chart
From Aug 2024 to Sep 2024
Navient (NASDAQ:NAVI)
Historical Stock Chart
From Sep 2023 to Sep 2024