WILMINGTON, Del., May 13, 2015 (GLOBE NEWSWIRE) -- While most recent college graduates with federal student loans choose the 10-year standard repayment plan, an increasing number of borrowers are turning to income-driven repayment options that allow their monthly payments to be set based on their income.
Navient today introduced a new interactive module to help borrowers understand these repayment plans. The module provides an overview of plans, benefits, costs and eligibility. Here are a few examples of information provided in the module:
- IDR uses your income, debt and family size to determine a manageable monthly payment.
- Depending on your circumstances and the IDR plan available to you, your payment may be as low as $0.
- Since your income is subject to change, IDR plans must be recertified annually.
- IDR provides more time to repay the loan. Typically, the loan term for IDR plans – or the amount of time you have to repay the loan – is more than 10 years and less than 25 years. But it is important to remember that the longer it takes to repay a loan, the more interest accrues on the loan, which also has to be paid back.
The module also includes four individual scenarios, helping borrowers understand the options available to people in situations that may be similar to their own.
"For many college graduates, making student loan payments is an important part of managing their finances," said Patricia Nash Christel, vice president, Navient. "Borrowers should explore the options available to them – including plans that vary depending on income – and make an informed choice about how they want to repay their loans based on their individual financial needs. At Navient, we're committed to promoting awareness and understanding of these programs."
Part of the Path to Success series, the new module is free of charge and available to the public. Path to Success features a series of 10-minute learning modules to help individuals develop the skills needed to make sound financial decisions. Other topics include student loan payment options, saving and investing, creating an effective budget, and credit scores. The programs are self paced and contain knowledge checks that allow users to measure what they have learned.
For a short preview of Path to Success, visit Navient's YouTube channel. Anyone can also visit www.navient.com/path for the full series, including the new IDR module.
As the nation's leading loan management, servicing and asset recovery company, Navient (Nasdaq:NAVI) helps customers navigate the path to financial success. Servicing more than $300 billion in student loans, the company supports the educational and economic achievements of more than 12 million Americans. A growing number of government and higher education clients rely on Navient for proven solutions to meet their financial goals. Learn more at navient.com. Navient began trading on Nasdaq as an independent company on May 1, 2014.
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