Navient shares tax credit with $1,000 bonuses to 6,700 employees

Jan. 03--HANOVER TWP. -- Crediting the new corporate tax rate recently approved by Congress, approximately 98 percent of Navient employees across the country received $1,000 bonus just days before the holidays.

According to company officials, Navient has approximately 6,700 employees nationwide including more than 900 in Wilkes-Barre.

According to a memo to employees from Jack Remondi, Navient President & CEO, titled "Special Announcement," Navient announced it will pay a $1,000 bonus to all non-officer employees.

According to the memo from Remondi, obtained by the Times Leader:

"This week, Congress passed a major tax bill. One aspect of this bill lowered the corporate tax rate to help make America more competitive in the global market place and to help grow our economy. This lower tax rate has a positive impact to Navient.

In response, I wanted to do something that would have an immediate impact for Team Navient. I am thrilled to announce that we will pay a $1,000 bonus to all non-officer employees. In total, 98 percent of our teammates will receive this bonus, which will be delivered through a special payroll deposit next week.

This investment recognizes our talented, dedicated employees who are on the front lines delivering positive results for our customers each and every day."

The memo went on to say that in the coming weeks, Navient will take a broader look at other ways to support "our talented workforce" and to identify opportunities for additional investments in technology and innovation that better serve our customers.

Remondi closed the memo by thanking employees for their "dedication and commitment to our customers, clients and to Team Navient," and he wished all a "very happy holiday season."

Employees cheered and hollered

Colleen Hughes, an instructional design specialist -- she works behind the scenes in the company's training department, said co-workers "cheered and hollered" when they read their emails.

"And it came right before the holidays," Hughes, 33 of Dupont, said. "When we all started reading our emails, people got up and applauded and cheered and hollered. This was such a huge relief."

Hughes said when she first looked at the email from Remondi she read the first paragraph that dealt with the passing of the corporate tax credit bill. Then she read the second paragraph.

"I literally started to cry," Hughes said. "I was shocked. I have a 3-year-old and I over-spent for the holidays. This really helped me out."

As news of the $1,000 bonuses made its way electronically through Navient, Hughes said people just became so emotional and overwhelmed with happiness.

"I know I feel I'm valued that we were even considered," Hughes said. "We all feel valued by the company -- that we all are a valuable asset to the company. So much so that they recognize our talent and dedication."

Legislators comment

U.S. Rep. Lou Barletta, R-Hazleton, supported the new tax plan.

"This is the kind of benefit we will continue to see from the Tax Cuts and Jobs Act," Barletta said. "Growth and opportunity will lead a new American era of prosperity. Companies will invest in the American worker and the government will take less from their paychecks. I am very happy Northeast Pennsylvania is already reaping the benefits of an economic wave which will lift all boats."

Across the aisle, U.S. Rep. Matt Cartwright, D-Moosic, said he was pleased to hear of Navient's decision to pass on some of its tax savings to its employees, but he questioned how many corporations will follow Navient's lead.

"It's great to hear that Navient did the right thing in giving a portion of their tax windfall to the hardworking employees at their Wilkes-Barre facility," Cartwright said. "This is certainly a credit to Navient's foresight and good management. Unfortunately, while this kind of gesture is bound to generate headlines, the question is, how many other corporations will choose not to give out these tax-windfall bonuses?"

Cartwright went on to wonder why the tax law didn't just pass that kind of bonus on to the entire middle class, instead of only the ones lucky enough to have generous bosses.

"If we were willing to go $1.4 trillion into debt, why didn't every working family in the middle class get bigger tax cuts, instead of passing 83 percent of the cuts to the top 1 percent?" Cartwright asked.

Cartwright said House Speaker Paul Ryan has his sights set on cutting Medicare, Medicaid and Social Security and will be using the national debt, including that extra $1.4 trillion, as a reason to do it.

"So, while I congratulate Navient on this wise act, it is not a reason to like the Ryan tax bill," Cartwright said. "Simply hoping for, and depending on, the kindness of corporate America, is no way to stick up for the middle class."

State Sen. John Yudichak, D-Plymouth Township, praised Navient for its decision to share with its employees.

"Navient has created more than 1,000 good jobs at their Hanover Township facility, and it is great to see a good community partner, like Navient, continue to reinvest in the local workforce that has made them a national leader in the loan service industry," Yudichak said.

State Rep. Tarah Toohil R-Butler Township, said she was pleased with "this good news" of workers receiving holiday bonuses.

"In our area, the bonuses amounted to almost one million dollars," Toohil said. "It is extremely positive that a company would reward their employees for their hard work and dedication. Hopefully with our economic climate gearing up, more employers will follow suit."

Other Navient news

In 2017, a record 530,000 customers paid off their Navient student loans, according to Globe Newswire.

One person Navient highlighted is Alison Moore of Athens, Ohio, who was a first-generation college student. Moore now works in higher education, directing a retention program that provides support services for underrepresented students on campus.

"I made it a priority to make regular, on-time payments until my loan was paid in full," Moore said.

Moore recommends other new graduates create a budget to help manage their personal finances.

"Try to stay with that budget each month," she said. "Make sure that utilities, student loans, credit cards, and other monthly bills are paid first, and on time, before spending on lifestyle expenses."

Most customers are making progress toward repaying their student loans. At the end of 2017, 9 out of 10 customers with loans serviced by Navient in active repayment were current on their student loan payments.

Navient says for many customers, automatic payment is the easiest way to ensure regular, on-time payments. More than 647,000 customers enrolled in auto-pay in 2017, bringing the total number of customers making automatic payments to 2.4 million -- most of whom qualify for an interest rate reduction.

About Navient

Navient provides free financial literacy tools, proactive outreach and guidance to help customers achieve their financial goals.

In 2017, Navient launched The Career Playbook, which offers 27 videos for customers looking to jump-start their career, including how to ace an interview, establish a professional network, or use LinkedIn to identify and attract potential employers.

Also new in 2017, the online Money Under 35 quiz shows individuals their financial persona, how they compare with today's young adults, as well as useful resources and tools.

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