Navient - Student Loans - Lower Monthly Payment by paying off individual loans

Question

When I look at my loans through Navient, I can see that the amount of my monthly payment is the aggregate of the monthly amount of each individual loan in the account. If I was to apply extra money to pay off one of those loans, would that reduce my minimum monthly payment?

For example:

Loan A: 100
Loan B: 1000

Loan A monthly payment: 1
Loan B Monthly payment: 10
Total monthly payment: 11

If I pay off Loan A, does that reduce my payment to the 10 for B, or is Navient still going to require me to pay 11 a month?

*note - I'd still would want to be paying 11 a month, I'm just curious if I would still be 'required'

Answer 1

The monthly bill should reduce as required by Loan A no longer requiring payment.

This will occur only when Loan A is fully payed off, not before.

If you're going to do this, make sure you tell them that any extra money is principal reduction, and not "prepayment" Lets say you do pay off loan A, and you continue to pay $11 a month. If you specify "principle reduction" for the $1 extra, they must reduce the loan balance by $1. If you do not specify, or you specify "prepayment", they "may" apply $0.20 to principal reduction and $0.80 to interest.

Answer 2

When I called Navient about this exact question last year they told me that my loan is a term length loan; so if I were to make extra payments on one of my dozen loans then my total monthly payment would be adjusted (go down) in order to make sure that my loans would still be paid off in x months.

It is very important to note however that Navient has at least 4 loan payment types that I know of so I can make no assurances that yours will work the same way. The only way to get an absolute answer to this is going to be to Call Navient and ask them.