Navient student loan company, Navient, has come under fire for the way it handles the repayments of its student loan borrowers.
The company is currently in the midst of an investigation into the repayment process for its student borrowers, and it has admitted that it has made “significant errors” and “inaccuracies” in the way the repayment process works.
Navient says that its students are only paid for the first 30 days of repayment, with the rest of the payments being paid to the company.
The Federal Government has said that students who repay within 30 days should be paid $30.
This means that students would have to pay more than $30,000 each time they repay their student loans, which is quite expensive for many students.
The Financial Ombudsman’s report into the company’s student loan repayment system has called for more oversight of the way repayments are handled.
The Government is reviewing the way in which students are repaid, and has asked Navient to submit a report on how it can be improved.
But the Federal Government said it is confident that students will be satisfied with the way Navient has handled the repayment of their student loan debts.
“We are confident that Navient will continue to do the right thing in responding to our inquiry,” Minister for Student Financial Services and Skills, Scott Morrison, said in a statement.
The Student Loan Payments Board (SLBP) said that while it is not the sole responsibility of the Government to ensure that students are receiving fair and timely payments, it is important to ensure a fair and consistent repayment process.
“In this instance, we are pleased that we have been able to work with the Federal Ombudsman to ensure the repayment processes are compliant with all relevant statutory obligations,” the SLBP said.
“This is a clear example of how we can improve the way that our student loan debt is paid.”
A spokesperson for the Federal Education Minister, Simon Birmingham, said that the Federal government has “a responsibility to ensure students are paid on time and at a fair rate”.
“The Government will continue our efforts to improve student debt repayment by ensuring that all Australians are getting the fair and fair deal they deserve,” he said.
The Consumer Affairs Commission has also raised concerns about the way borrowers are being paid.
It said that borrowers with low incomes have to have their loans serviced on a monthly basis, and the payments are made on a “proper and fair” basis.