Lana Oconnell
Navient is a company that provides education finance and loan servicing. As of October 21, 2024, Navient has transitioned its student loan servicing to MOHELA, which will now work with borrowers on repayment plans and other issues related to their student loans. To pay down the principal of a student loan serviced by MOHELA, borrowers can make their monthly payment and any additional payments will be applied to the principal of the loan. This will help borrowers pay off their student loans faster and reduce the overall interest paid over time.
| Characteristics | Values |
|---|---|
| How to pay the principal on student loans from Navient | Make a monthly payment on the loan, then pay any amount beyond the interest due, which will be applied to the principal of the loan. |
| How to access your Navient student loan account | Visit servicing.mohela.com to access your account. Log in with your existing user ID and password. |
| Interest rates on Navient student loans | Interest rates on federal student loans are set by Congress, whereas interest rates on private loans are set by the lender at the time of loan origination. |
| Navient student loan forgiveness | Navient borrowers can apply for private loan forgiveness if their school misled them. Borrowers with Navient student loans originated between 2003 and 2014 who fell more than 7 months behind on payments can also get cancellation. |
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What You'll Learn
Make monthly payments
Making monthly payments is a crucial step in paying off your student loan principal from Navient. Here are some detailed instructions to help you navigate the process:
Understanding Your Loan
First, it's important to understand the components of your loan. Your loan consists of the original amount borrowed, any associated fees, and the interest that accrues over the borrowing period. The interest rate on your loan is governed by the terms of your loan agreement and varies depending on whether it is a federal or private loan. Federal student loan interest rates are set by Congress, while private loan interest rates are determined by the lender at origination.
Making Regular Payments
To pay down your principal balance, it's essential to make regular on-time monthly payments. These payments are typically applied in a specific order. First, the payment covers any late fees or other charges (if applicable). Then, the remaining amount reduces the accrued unpaid interest, and any excess payment goes towards the principal. This means that any amount paid beyond the interest due automatically decreases your principal balance.
Strategies to Pay Off Principal Faster
If you want to accelerate your progress, consider the following strategies:
- Pay Extra When Possible: Whenever you can afford to pay more than the minimum amount, do so. Even if your account status shows that you are ahead or have a lower amount due, maintain your regular payments and take advantage of the opportunity to pay extra. This will help you pay off your student loans faster.
- Avoid Forbearance: While forbearance can be a helpful option during periods of financial difficulty, such as job loss or decreased income, it can also increase your overall debt. Interest continues to accrue during forbearance and is added to the principal when repayment resumes, causing your principal balance to grow.
- Income-Driven Repayment Plans: Consider enrolling in an income-driven repayment plan. These plans base your monthly payments on your income and family size, which can result in lower payments if you qualify. However, be aware that this may extend your repayment period, potentially causing you to pay more interest over time.
- Private Loan Forgiveness: If you believe you were misled by your school, you may be eligible for private loan forgiveness. Additionally, borrowers with Navient student loans originated between 2003 and 2014 who experienced significant payment delays can also qualify for loan cancellation.
- Auto-Pay Discounts: Signing up for auto-pay from a checking or savings account can sometimes lead to a lower interest rate and faster repayment. However, this option may not be suitable for everyone, as it involves automatic billing.
Loan Servicing Information
As of October 21, 2024, MOHELA services Navient student loans. You can access information about your loan, repayment plans, and make payments by visiting servicing.mohela.com. Remember to use the same user ID and password you previously used with Navient. MOHELA will work with you on repayment plans and assist you with any other issues related to your student loans.
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Pay more than the interest due
To pay more than the interest due on your student loans from Navient, you must first make your monthly payment. Any amount paid over the accrued unpaid interest will automatically reduce the principal. This is true even if your account status shows that you are paid ahead or have a lower amount due. Making regular payments as usual will help you benefit from paying extra.
You can also apply additional student loan payments directly to the principal while on an income-based repayment plan. This will help you pay off your student loans faster.
If you are on an income-driven repayment plan, forbearance can be used in situations such as job loss or any other decrease in income. However, forbearance can increase your overall debt as interest continues to build and is added to the principal when repayment begins again.
To avoid this, you can make a lump-sum payment towards the principal. However, if you choose to do this, you must specify that you want to apply the excess payment towards the principal and not future loan payments. This will prevent you from paying interest on a higher principal.
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Avoid forbearance
When paying off a student loan from Navient, any amount paid beyond the interest due is applied to the principal of your loan. This means that you can pay off the principal faster by paying extra whenever possible.
Forbearance is a temporary solution to stop or lower monthly payments. It is not a long-term strategy and should be avoided if possible, as it usually increases the amount you owe. Interest continues to build during forbearance and is added to the principal when repayment begins again. This can set you back in your repayment journey and increase the overall cost of your loan.
Forbearance should only be used as a last resort to avoid defaulting on your loan. If you are experiencing financial difficulties, an income-driven repayment plan is a better option to keep your payments manageable. These plans allow you to continue making payments based on a portion of your discretionary income, and any continuous payment record helps count toward the years needed to qualify for forgiveness of the remaining balance.
If you expect to resume repayment within a year or sooner, you may want to consider student loan deferment instead of forbearance. Deferment is a better option for pausing repayment because interest does not typically accrue, whereas forbearance can cause interest to build up, increasing your overall debt.
In summary, forbearance should be avoided if possible, as it can lead to increased debt and set you back in your repayment journey. Instead, focus on making regular payments and consider income-driven repayment plans or deferment if you are struggling financially.
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Apply for loan forgiveness
If you have federal student loan debt, your loans will be eligible for federal forgiveness programs like Public Service Loan Forgiveness (PSLF). However, private student loans are not eligible for PSLF.
If you have private student loans, you may be eligible for forgiveness through state or profession-specific student loan forgiveness programs. For example, Navient offers private student loan forgiveness for borrowers misled by their schools. Eligibility is based on school misconduct, not employment or income. Borrowers must submit an application explaining how their school deceived them and provide supporting documentation.
If you have federal student loans, you can apply for PSLF on the StudentAid.gov website. If you’re accepted into the program, Navient will automatically transfer your federal student loans to FedLoan Servicing.
To get your Navient federal and private student loans forgiven, you’ll need to take different steps. For federal loans, you’ll need to consolidate those FFEL and Perkins Loans into a Direct Consolidation Loan. This will make you eligible for many of the forgiveness opportunities the Biden Administration has launched. For private loans, you’ll need to request an application from Navient.
If you’ve already made three years of federal student loan payments toward Teacher Loan Forgiveness or five years toward Public Service Loan Forgiveness while working full-time, you should avoid refinancing with any private lenders. If you do choose to stay with Navient, make sure you’re on the right repayment plan and filing your taxes correctly.
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Contact MOHELA
If you are a student loan servicing customer of Navient, your loans are now serviced by MOHELA. To pay off your student loans faster, you can pay extra whenever possible. Any amount paid beyond the interest due is applied to the principal of your loan. You don't need to request that it be applied to your principal. Even if your account status shows that you are paid ahead or have a lower amount due, keep making your regular payments.
To contact MOHELA, you can call them at 1-888-866-4352. Their phone lines are open Monday through Friday, from 7 a.m. to 9 p.m. Central Time. You can also write to them at the following address:
MOHELA
P.O. Box 7170
North Chesterfield, MO 63017
MOHELA also offers online support through their website, including a live chat feature and email support. You can create an online account to access your loan information and make payments. Additionally, they provide a mobile app for convenient access to your loan details and payment options.
For specific questions or complex issues regarding your student loans, it is advisable to contact MOHELA directly to obtain the most accurate and up-to-date information. They can provide personalized guidance based on your unique circumstances.
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Frequently asked questions
Any amount paid beyond the interest due is always applied to the principal of your loan. You don't need to request it be applied to your principal. You can also pay extra whenever possible to pay off your student loans faster.
Navient is transitioning its student loan servicing to MOHELA. Visit servicing.mohela.com for all questions related to your loans.
The interest rate on your loan, whether fixed or variable, is governed by the terms of your loan agreement. Interest rates on federal student loans are set by Congress, whereas interest rates on private loans are set by the lender at the time of loan origination.
Navient borrowers can apply for private loan forgiveness if their school misled them. Borrowers with Navient student loans originated between 2003 and 2014 who fell more than 7 months behind on payments can also get cancellation.
Yes, forbearance is a temporary pause in payments that can be used in multiple situations, such as job loss or any other decrease in income. However, interest continues to build and is added to the principal when repayment begins again.
