Earnest offered by Navient? - hold on a minute here

[paulesport]

So i got an email from Navient offering their new product Earnest (which I had no idea they were owned by Navient when I had initially started my research on student loan refi). My first and true reaction was - Are you kidding me?? All the benefits are in-line with SoFi and other student loan refi lenders but just knowing they are owned or associated with Navient doesn't sit well with me. I have experienced first hand with Navient, where my current student loans are, that they are trying to keep you from actually paying off your loans and keep you in this purgatory. Their tactics are clearly not ok hence why they are in lawsuits at the moment. So why would anyone knowing this want to refi with Earnest?? This just seems to be a re-brand to me but underneath it all is just the sly wolf. Anyone have thoughts or experiences with Navient to Earnest?

[Anonymous]

I don't have experience with either but I know Servicers and they are one big scam. There are servicers affiliated with collection agencies so it greatly benefits them to steer students toward defaulting. Even if it's just them alone, they "accidentally" lose payments, put people on plans they can't afford and fail to mention IDR like they're supposed to, overcharged interest and almost every single call give misinformation. They profit from this behavior. And though it's acknowledged by the Dept of Education that this abuse has been happening for over a decade, nothing happens to stop it.
I'm saddened to hear of this latest association and it make me mad how much students will be the victims in all of this. But I'm not surprised.
It's a good thing you recognize it for what it is. I can only hope the same of other borrowers.

Btw, I can't help but feel the loans are being privatized to prevent those student from getting the benefit of any massive federal loan forgiveness that may happen...

[calyx]

Whoa - I had no idea Earnest is being offered by Navient.   This will *definitely* impact the advice I give them when asked.

If I'm talking with someone dead set on going with a private loan, I usualy reference Sofi, Earnest, and Lendkey and now I know better.    I blame myself for not doing more research into these companies, and I thank you for bringing this out.

And yes, I think Navient is being shady as heck by offering private student loans. 

[paulesport]

I second your closing note Sabii. All i see is predatory tactics in every form. I cannot trust any brand associated with Navient.

[Anonymous]

I recently participated in a focus group for Navient and they asked me a question about this very subject. While they didn't mention anything about Earnest (and I never heard of them until now), they were real curious to know why I wouldn't be interested in refinancing my loans, as I guess this is a "benefit" they're trying to expand upon.

The point someone made about qualifying for debt forgiveness (which now appears increasingly likely to happen under the next administration) is good, but I also explained to them that I would risk losing all of my Department of Education protections, including the IBRP that I'm on.

So good for you that you ran the other way! Student loans suck either way, but I'd rather deal with the government (who in theory should have my best interest in mind) than voluntarily give myself up to the loan sharks.

[Anonymous]

Out of curiosity, of the federal servicers, is there one that is less shady? If I'm going to refi (and I'm currently w Navient), do any have a better reputation? (I know, it's like comparing rotten apples to rotten oranges.)

[calyx]

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@Anonymous wrote:
Out of curiosity, of the federal servicers, is there one that is less shady? If I'm going to refi (and I'm currently w Navient), do any have a better reputation? (I know, it's like comparing rotten apples to rotten oranges.)

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Funny you should ask that - 
If you consolidate your loan, you get to CHOOSE your servicer, which I wish I'd known, because I was doing it over the phone and had all of a few minutes to do some massive googling.

I have Cornerstone - I've been very happy (relatively speaking) with them overall.  Their communication isn't the greatest to start, but they DO communicate and they have both chat and live-people-on-the-phone options.   It's actually EASY to get a person on the phone, which I appreciate.
When I first started, you couldn't do anything online, it was all fax and mail (which actually was the source of my communication issues), but now they allow far more online (revamped the website about 6 months ago?).

If not Cornerstone, Great Lakes would probably be my other recommend, as they also seem pretty easy to deal with (again, relatively speaking).

I don't have anything negative to say about some of the other less-known ones.
I would rather not deal with Navient or Nelnet from what I've heard from others, and AES/PHEAA can die in a fire as far as I'm concerned (I have dealt with them in the past, they're the reason I went into a second default).

[Anonymous]

Thank you, that's why I asked. I haven't had any noticeable problems w Navient, although I feel like I should probably get an interest accounting, but they have such a terrible reputation, I don't want to stay with them if it's just a matter of time until there's a issue.

[Anonymous]

I'm on the phone with them now requesting an accounting. They are extra-not happy 😂

[calyx]

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@Anonymous wrote:
Thank you, that's why I asked. I haven't had any noticeable problems w Navient, although I feel like I should probably get an interest accounting, but they have such a terrible reputation, I don't want to stay with them if it's just a matter of time until there's a issue.

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No problem - and I totally understand.
The reason I chose Cornerstone was because they had easy-to-reach live humans.  I figured that if something was going to go wrong, being able to talk to a human would be best.   100% no complaints - my first and only snafu was fixed through a phone call.

They only accept payment through ACH (checking/savings), so if you're going to want to use cards for rewards or anything, that's a no-go.  I have auto payments (for the .25% discount), and I don't want to play reindeer games and chance something going wrong, so that wasn't a problem for me.   

I would recommend you pick what property/options is/are most important to you (live humans, payment options, social media contacts, whatever), do a little research, and choose accordingly.