This week we got an unusual student loan email. This borrower had a few routine questions about consolidating his student loans, but his final question was a very interesting one: will Navient make consolidating my student loans difficult?
Given that simple steps, like processing payments, can be a challenge with Navient, it seems reasonable to inquire as to how much of an issue consolidating Navient loans might be.
The Consolidation Process and Loan Payoffs
When you consolidate or refinance your student loans, your new lender pays off all some or all of your old loans. The motivation for the borrower is to find a new lender that offers lower interest rates or better terms. Navient may not like being your old lender, but they are powerless to stop the process.
The exact steps that have to be taken will depend upon the student loan consolidation company you choose. For the larger lenders, like SoFi and CommonBond, this is a process that happens on a daily basis. With Navient being the largest federal student loan servicer, this is certainly a process that these companies have done many times before.
Your new lender may ask you to get a payoff quote from Navient, but this is something that can be done on the Navient website without requiring any assistance from Navient customer service.
If Navient is a major concern, it is certainly reasonable to ask perspective new lenders about the steps that have to be taken to consolidate the loans and how they deal with Navient.
Borrowers going through Federal Direct Consolidation do not need to worry. The Department of Education will handle all interaction with Navient for the federal consolidation process.
Dealing with Navient
Concern regarding interactions with Navient is certainly justified, but it shouldn’t give you pause from starting the student loan consolidation process. Navient has no ability to stop your student loan consolidation once a new lender approves the loan. The worst they can do is be difficult. Even if they make the process tedious, it is nothing more than a reason to be glad you no longer have to work with them.