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Navient SL question

Frequent Contributor

Navient SL question

I currently have my student loan's serviced through Navient, divided into 7 different student loan's.

 

Total balance across all 7 is approximately 21k at the moment, as I've been paying on them for roughly 2 years.

 

My monthly payment is ~270 a month, I may one payment and Navient divies it up amongst the 7 different loans.

 

My question is, If I were to start paying off a few of the loan's ( most have APR around 3-3.5%, but some of them are in the 6.5% range) would my monthly payment still remain 270 after paying off a single, or a few of the loans?)

 

I don't mind the payment and I will more than likely start doubling my payment as soon as my car loan is paid off in a few months, but I want to ensure that Navient doesn't lower my monthly payment due to a few of the loan's being PIF.

 

I would think that even if I pay off 2 of the 7 loan's my payment would remain the same, they would just allocate the payment's in different %'s to the individual loan's left.

AMEX BCE ($39,500) CITI AAdvantage ($18,500) Region's Platinum Card ($14,400) Discover IT ($13,000) Macy's ($7,500) Chase FU ($10,000) TU:768 EX: 767
7 REPLIES
Senior Contributor

Re: Navient SL question

Message 2 of 8
Senior Contributor

Re: Navient SL question

I've never had a student loan so I don't know but Navient has a web page for how different loans are allocated:  

 

https://www.navient.com/loan-customers/how-payments-work/loan-payment-allocation/

 

 

Not sure if it helps at all, but at least they have a starting point if others can't answer your question!

 

Also note that the CPFB sued Navient over playing games with allocations: https://www.cnbc.com/2017/01/18/cfpb-navient-hurt-borrowers-trying-this-common-repayment-hack.html

Message 3 of 8
Frequent Contributor

Re: Navient SL question

I believe the loan payment amount would go down as you pay off the higher interest parts. But you have to send the extra payments thru the mail with specific instructions not to advance the loan and apply the extra funds to the specific loans with the higher interest rates. And then followup to make sure this was done properly.
Message 4 of 8
Frequent Contributor

Re: Navient SL question

I think the answer depends on the type of payment plan you are on.  I would guess if you are on some type of income based repayment plan that your payments would stay about the same.  Ultimately, it doesn't matter what your monthly payment would be though as you are looking to pay extra.  Does it really matter if your payment goes from $270 to $250 if you are planning on paying more anyways?  If you are on an IBR plan, I think the payments on the individual loans would remain the same until you resubmit paperwork, so essentially lowering your payments, but when renewal time comes around, you will likely be right back around the same monthly payments just divied up differently.

FICO8 Scores as of 8/8/17: EQ-643 TU-644 EX-629
Current FICO8 Scores as of 2/7/18: EQ-665 TU-665EX-681
Current Mortgage Scores: EQ-686 TU-666 EX-642
Goal: all FICO8s above 700

Credit Card Lineup: Capital One Quiksilver One - $850, Torrid - $3,000, Credit One - $950, Wayfair - $4,100, Victoria's Secret - $1,500, Overstock - $3,650, Discover it - $9,500, Amazon Store Card - $200, Capital One Platinum - $3,000, Care Credt - $1,500
Message 5 of 8
Frequent Contributor

Re: Navient SL question

I'm not on any special repayment program, just paying my student loan's over 120 mo's. I understand your point in it doesn't matter if the payment drop's since I am paying extra. I am just simply wondering if that's the case for educational purposes.

AMEX BCE ($39,500) CITI AAdvantage ($18,500) Region's Platinum Card ($14,400) Discover IT ($13,000) Macy's ($7,500) Chase FU ($10,000) TU:768 EX: 767
Message 6 of 8
Frequent Contributor

Re: Navient SL question

Your monhly payments would be lower in that case since you would have fewer loans to be paying on. The payment amounts are to ammoritize the loans over the course of 10 years, so if there is a lesser amount to be repaid in the same amount of time they will lower the payments. 

FICO8 Scores as of 8/8/17: EQ-643 TU-644 EX-629
Current FICO8 Scores as of 2/7/18: EQ-665 TU-665EX-681
Current Mortgage Scores: EQ-686 TU-666 EX-642
Goal: all FICO8s above 700

Credit Card Lineup: Capital One Quiksilver One - $850, Torrid - $3,000, Credit One - $950, Wayfair - $4,100, Victoria's Secret - $1,500, Overstock - $3,650, Discover it - $9,500, Amazon Store Card - $200, Capital One Platinum - $3,000, Care Credt - $1,500
Message 7 of 8
Established Contributor

Re: Navient SL question


@wrote:

I currently have my student loan's serviced through Navient, divided into 7 different student loan's.

 

Total balance across all 7 is approximately 21k at the moment, as I've been paying on them for roughly 2 years.

 

My monthly payment is ~270 a month, I may one payment and Navient divies it up amongst the 7 different loans.

 

My question is, If I were to start paying off a few of the loan's ( most have APR around 3-3.5%, but some of them are in the 6.5% range) would my monthly payment still remain 270 after paying off a single, or a few of the loans?)

 

I don't mind the payment and I will more than likely start doubling my payment as soon as my car loan is paid off in a few months, but I want to ensure that Navient doesn't lower my monthly payment due to a few of the loan's being PIF.

 

I would think that even if I pay off 2 of the 7 loan's my payment would remain the same, they would just allocate the payment's in different %'s to the individual loan's left.


I don't know exactly what they'll do, but based on their behavior, my guess would be they would do the last thing you mentioned - keep the payment the same and divide it differently, at least until their next audit hits.

 

I have found that Navient really only looks at the total amount owed and the target payoff date for monthly payment calculations. They don't care how much or little is owed on an individual loan, at least in my experience. They also have a system that does strange things when you pay extra. I've had it re-calculate my payment downward by $100/month after an audit, causing me to call in to get them to raise it again. After about a year, the system then showed my monthly payment stuck at $0 but auto-pay kept taking money as it was supposed to. It's still stuck in that state today.

 

Your best bet at an answer is to call in and ask what they'll do. If you want to keep making the same payment, I would definitely tell you to call in and have an agent manually fix your payment schedule (assuming auto-pay).

Message 8 of 8