Have you ever heard of Naviance rate reduction program? No, it’s because they don’t tell you about it. In fact, that’s why I want to make this video, because I couldn’t find any videos and the information about it. When I googled it, you see navient has a program to help you with private student loans that you’re about to default on.
They don’t tell you about it and they don’t give it to you as an option to apply for. Upfront to give you an example, I have had both private and federal student loans serviced by NA BIA and with my federal student loan, there was an option that if you couldn’t afford your payment, he would take some.
There were some options where you could apply to have either an extended repayment term or a lower payment, but they’re not really worth willing to work with you very much if you can’t pay your private loan. But there is a program that will help you. First, I will tell you that you don’t ever want to get to the point, where you can get in this program.
But if you’re like me, where you were doing your best to pay your student loans and you couldn’t, just could not make the payments because of whatever your situation is this might be an option that will save you. So Navient Rate Reduction Program is a program that they have for private loans that they manage.
I don’t know if it’s for maybe ones, I’ve taken over, I took mine out originally with Naviance. I have two large loans with them, one for seventeen thousand, one I believe is like another forty something like that. With those loans, I was close to the edge of default on them and I spent all summer of 2015 getting them current.
But as soon as I got them current, I had those problems with the job I quit and the payments started going unpaid again. Now something amazing happened in April 2016, and that was one day I logged into my account on navient.com, and everything said it was paid current. I thought no, maybe this is how they changed the site, maybe this is what it looks like when you default on a loan, because I was several months behind and I started a new job.
But the money wasn’t coming in yet, there wasn’t a way for me to put that to start putting money toward it. But it said no past due balance, the balances themselves had lowered a little bit by a few hundred dollars. It was as if they took the little past due balances and just took them off my loan balance amount, and completely forgave them.
I didn’t get a 1099 at the end of the year for it, if they were just going. In fact, they changed my credit report, they erased all those past payments that said they were missing. All paid is agreed, this was like a miracle and not only that, but they took away the interest, meaning that they had all dropped to one percent interest.
The original interest rates were 2% ish, I was very lucky as much a student loan debt as I have. I was lucky that I got in at the beginning of the student loan bubble, because I was still getting loans for very low interest rates. I think my highest one is a five and that’s a federal loan, not that Naviance services.
But my private loans had very low interest on them, so I was very lucky with that. So they dropped the balances, forgave the payments, changed my credit report and now my interest is at 1%, which hopefully would make paying off the actual principal of the debt more obtainable.
Not only did they do that, but also they changed my payment amount. I don’t remember what they were before, but they were approximately 200 to 250 dollars each two, so four to five hundred dollars a month total and that helps immensely. Because now it’s two hundred eighty one dollars a month, the two combined now a coma cosigner.
And I asked her about whether she sign up for a payment plan or not. And she said this isn’t like I didn’t try to pave it an audience. I had called them, talked to them, tried to work with them, try to negotiate four years. I told him, I filled out financial documents for them, telling him, showing them that I literally could not make the payments.
And they didn’t offer any help, I just gave him proof and that’s why I was so surprised that on the very edge of default. Suddenly, they’re like we’re going to hook you up, that is the one thing I can’t tell you about this program. It is how exactly you get on it.
You have to be on the edge of default and I also know that you can’t apply for the program, but if you’re in my situation with an Avant private loan and you are getting close to defaulting, you’re several months behind, maybe someone at navien will have a conscience and will help you out.
And now how this program should tell you first finish that story about my cosigner. So my cosigner said she did not sign up for it, they didn’t contact me or even tell me about it. I think I did maybe two months later to get a letter from them in the mail, saying you’re on this program now. So what happened is that they started automatically taking payments out for that $281 amount, which would have been nice if they told me.
I did not authorize those and with all the other benefits, I guess I’m glad that it was just getting paid and they were hooking me up, although I didn’t really like that they signed me up for a payment plan and took my credit card information that I didn’t give them.
But two hundred eighty one dollars a month comes out the 15th of every month, they have been doing that for a year. And at the end of the year, they sent me a couple of emails and they said you were only approved for a year. However you can renew it, send us a new financial document and it gave me a one-page financial statement, where I filled in everything from, where I work and live, how much I make gross and net, how much I pay toward things like insurance and retirement.
And what my account balances are and you send that back to them and they’re supposed to get back to you within a few days. Now I haven’t heard back from them yet, confirming that they did get it. So I’m not sure what my new payment amount is. I’m not sure whether it might go up or get down,
But I’m hoping that everything stays the same and then maybe the payments just a little bit more or something like that. I have been able to keep these loans in paid as agreed status for over a year now. And that is all due to NA being finally, being willing to work with me. The one real downside of this is that they won’t work with you, upfront they claim there’s nothing they can do.
You know they’re not nice about it and they refuse to help you, they make you get to the point of almost completely defaulting on your loans before. Maybe I don’t know how they can do those, but they might step in and help you. It seems that you have to do that to prove to them that you can’t pay it.
I don’t know what the criteria is, there is a program called the rate reduction program. And it does all those things that I previously mentioned, hopefully this is some hope and a lifeline to somebody. I can’t even tell you how to contact them directly or ask about it, but if you’re out there struggling to pay your loan and you just can’t that.
There is hope that they might eventually work with you, even though they haven’t before. So I hope this does help somebody, I mean if one person finds out and joins us program, because they heard about it.
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