Breaking News: Navient is Out!

Hey Everyone-

​A pretty big-shoe dropped yesterday:  Navient (which was spawned out of Sallie Mae) is pulling out of the federal student loan servicing business.  PHEAA/Fed Loans announced they were pulling out a couple of months ago, and this is now the third servicer (of 8) to quit the business.  This is pretty strong evidence that the federal student loan system is crashing (as we have been saying for the past two+ years).  

This is not a victory.  This is no time to be popping any champagne corks. Bankruptcy remains gone from the loans.  Statutes of limitations remain gone from the loans. See the livestream I did last night about this.

The disarray may get the Administration thinking about doing big things (like loan cancellation), but there is a lot of risk with that.  For example, there has been a behind-the-scenes move within certain sectors of the student loan swamp to sell off the entire federal loan portfolio to Wall Street, and something dramatic like that becomes more likely now that the two largest servicers are out of the game. 

So now more than ever, getting bankruptcy rights back quickly becomes even more important.  A sell-off to Wall Street with bankruptcy protections returned would be one thing, for example.  Without it would be quite another, and a truly terrible thing for us all.
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I hope this is not lost on you.  I hope that you will start doing our daily actions, and even go back a few weeks and get caught up.  We need you more than ever, and you need everyone to be helping in exactly the same way.  

We're getting closer! 

-Alan