Should I Refinance my Navient Loans?

Know the appropriate time to refinance your Navient loans. Understand the role of Navient in stopping you from getting your loans refinanced by another lender. Know about student loan refinancing programs by Navient.

Updated by Kanishkar P on 13th February 2020

Student loans act as helping hand for those who are struggling to pay their college tuition. But the same student loans can give you a lot of trouble when it comes to repayment. Many private lenders have strict policies regarding the repayment of student loans. In that list of troublesome private lenders, Navient also holds its place among the top ones. 

In such cases, many borrowers tend to switch their lenders by keeping their student loans at a new lender. Refinancing student loans is a good option to chop the interest rates on your existing loans. But it is not advised to go for refinancing in certain cases. So here we give you a clear idea of whether it is right to refinance your student loans that are currently with Navient through a new lender.

Table of Contents

Student loan Refinancing

Refinancing is a process through which the terms and interest rates, along with other features of your existing loans are reconsidered and restructured to meet your current financial situation. It allows you to save money on interests and make payments easier and more manageable. By cutting off a few percentages, you can save some amount throughout the duration of student loan debt repayment.

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When is it appropriate to refinance Navient Loans?

There are certain conditions under which refinancing student loans serve as a better option. The two main things that you need to remember before refinancing are Plan and Opportunity. 

Plan: Student Loan Refinancing is a worthy process only if it will save your money. Refinancing your private student loan makes sense only if you can get lower interests on your student loans when compared to the current one. If you currently have student loans with Navient and if you wish to refinance them through another private lender, then you must plan wisely so that you end up with the best lender who can offer lower interest rates on your loans on refinancing them.

Opportunity: Refinancing is a great option, but not everyone can do it.  Lenders like Laurel Road and SoFi offer interest rates starting below 3%, but the catch is that prospective customers need to have a decent income and credit score.  For these lenders to make money on their low-interest rate loans, they have to be certain that borrowers will be able to pay it back in full. The good news for borrowers is that each lender evaluates applications differently.  Several lenders may see you as a bad bet and reject your application, but it only takes one lender to see you as a good investment. For this reason, borrowers interested in refinancing should check out rates with at least 3 or 4 of the many student loan refinance companies.

Those who are planning to leave Navient by refinancing their Navient loans through another private lender may think that Navient will try to make the refinancing process difficult. But you don’t need to worry, because Navient cannot come in your way. And when you have contacted and requested your new lender for refinancing program, it is their job to deal with your old lender. Your new lender takes care of most of the procedures while taking your loan into their hands. 

Does Navient provide student loan refinancing?

Navient servicer mainly handles private loans and federal loan servicing. If you have a question that whether you can refinance your existing student loans through Navient, then the answer is ‘no’. Navient does not offer student loan refinancing. But it offers refinancing through NaviRefi. You also have a number of other lenders who offer student loan refinancing as a service. 

Concluding thoughts

Having a student loan with Navient and dealing with it may be a headache for some borrowers. Some borrowers can find a solution for their issues with Navient by refinancing their loans through another lender. However, a student loan refinancing is appropriate for only certain circumstances. So look out for the best companies to refinance your student loans that will be suitable for your requirements.