Navient is one among the nation’s largest federal student loan servicers. If you’ve got federal student loans, there’s an honest chance that navient lawsuit settlement could also be your servicer. Since …
Navient is one among the nation’s largest federal student loan servicers. If you’ve got federal student loans, there’s an honest chance that navient lawsuit settlement could also be your servicer. Since 2017, Navient has been mired during a growing number of lawsuits, including suits from the buyer Financial Protection Bureau (CFPB), several state’s attorney generals, and a gaggle of teachers.
This guide will offer you a fast history of the navient lawsuit settlement . it’ll explain briefly what they’re all about and what to expect moving forward.In January 2017, the buyer Finance Protection Bureau filed a lawsuit against Navient. The CFPB accused Navient of failing to act in its customers’ best interests. Among other things, the CFPB charged that Navient:
Failed to correctly apply or allocate borrower payments to their accounts
Steered struggling borrowers toward multiple forbearances rather than an income-driven repayment (IDR) plan
Deceived private student loan borrowers about cosigner release requirements
Reported loans incorrectly to the credit bureaus
Failed to inform borrowers of IDR plan renewal deadlines
In August 2017, navient lawsuit settlement filed a motion for the CFPB lawsuit to be dismissed. A federal judge denied the motion.
In October of 2018, nine teachers filed suit against navient lawsuit . They were supported by the American Federation of Teachers, the second-largest teacher’s union within the us .
In their lawsuit, the teachers allege that navient lawsuit settlement misled borrowers publicly service professions once they tried to access Public Service Loan Forgiveness (PSLF). especially , these teachers claim that Navient attempted to stay borrowers from transferring their loans to FedLoan Servicing (the exclusive servicer for PSLF) so as to avoid losing the associated fees.All of those lawsuits are ongoing. Each of the lawsuits are seeking financial compensation for misled borrowers. It’s important to notice , though, that there’s no such thing as “Navient Student Loan Forgiveness.”
But if you’re a navient lawsuit settlement customer, you’ll qualify for one among the federal government’s student loan forgiveness programs.
With the sheer amount of knowledge which will got to be presented in these cases, it could take years before any of them are resolved. Stay tuned and we’ll keep you updated as things move forward.Despite its faults, Navient isn’t wrong in protesting that the scholar loan system as an entire is broken. As Travis Hornsby explained when navient lawsuit settlement first broke, these sorts of stories really shouldn’t be only too surprising.
The people working for federal loan servicers are overworked and sometimes not given proper training. they’ll be too busy to offer personalized advice to each borrower, in order that they “read from the script.”
And when the federal first introduced the PSLF program in 2007, the Department of Education didn’t provides a guidebook about the way to handle it. Many servicers simply didn’t understand the principles .If your federal student loans are currently with Navient, these lawsuits may have you ever worried. But don’t panic. There’s an honest chance your loan is being serviced exactly because it should be.
However, if you notice any problems together with your student loans, contact Navient immediately. With all the bad PR Navient has addressed over the past two years, it should be wanting to fix mistakes. But if you encounter a problem navient lawsuit settlement won’t resolve, you’ll file a complaint with the CFPB or with the Department of Education.