Navient Private Student Loan Lawsuits and Collection

Navient is a subsidiary of Sallie Mae, one of the largest student loan lenders of both private and federal loans in the country. We commonly see both Navient and Sallie Mae (SLM) private student loan collection matters whether in pre-litigation collection with numerous collection agencies such as Transworld Systems and RAB or in litigation with collection law firms such as Forster & Garbus or Rubin & Rothman. The debt amount for Navient collection matters can be quite high, often surpassing $100,000. These matters can stay in collection for months before Navient decides whether to sue a consumer. Factors in deciding whether to sue may consist of the total amount of time in collection, whether the consumer has real property and or assets and whether the consumer is employed. Navient and other banks want to be able to recover money instead of wasting it if they take steps to sue a consumer which is why the factors above are taken into account.

In pre-litigation Navient matters, it is possible to negotiate and obtain a significantly reduced settlement. Factors in receiving a lower settlement depend on whether the consumer can make a lump sum payment or needs a long-term monthly payment plan, whether they have financial or medical hardship, whether they have assets and or property, and if they are employed. Lump sums allow for the largest reduction possible but monthly payment plans are convenient for consumers because they are interest-free which saves a ton of money that would accrue over time. Interest tends to be the buggiest problem with large private student loans. The same factors apply to settling litigation matters although it is crucial to prevent a default judgment from being obtained when a lawsuit is filed and the correct legal defenses asserted provide an additional layer of leverage when negotiating a settlement. Navient likely conducts a cost-benefit analysis using all of these factors when providing offers. The common range for both pre-litigation collection and litigation matters is 50% - 75% off of the balance which is a very large reduction especially when these private student t loans are over $100,000.