Class Action Lawsuit Again Navia Student Loans Phone Scam
What educatee loan borrowers should know about the Navient lawsuits
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Navient is ane of the largest student loan servicers in the country, with millions of borrowers using it to repay their federal and private educatee loans. However, a few lawsuits over the years take alleged harmful and deceptive practices, which could touch your educatee loans.
The servicer just reached a settlement for several of these lawsuits that volition forgive more than $one billion in student loans, but more than relief could exist bachelor farther down the line.
What are the Navient lawsuits?
Since 2017, Navient has seen its off-white share of lawsuits. Here'south what to know nigh which lawsuits have been resolved and which are ongoing.
Settled: State lawsuits
Several states filed lawsuits confronting Navient over the years, citing unfair lending practices, deception and mismanagement of loan products. Attorneys general from these states claimed that, amid other things, Navient steered borrowers into unnecessary abstinence instead of cheaper alternatives, purposely approved loans for borrowers unlikely to afford repayment and told borrowers that they owed more than they actually did.
On Jan. xiii, 2022, Navient reached a $1.85 billion settlement agreement with 38 states and Washington, D.C., resolving outstanding litigation with those states. Under the settlement terms, Navient volition exist required to forgive $ane.seven billion in private pupil loan balances for nearly 66,000 borrowers, primarily those who took out subprime loans to attend for-profit schools. Navient will also distribute individual restitution payments of $260 to approximately 350,000 federal borrowers who were placed into long-term forbearance.
Eligible private borrowers will receive a observe from Navient past July 2022, and federal borrowers should await a postcard in the mail from the settlement administrator in leap 2020.
Ongoing: Consumer Financial Protection Bureau lawsuit
On Jan. 17, 2017, the Consumer Fiscal Protection Agency filed a suit against Navient alleging that the servicer hurt borrowers by providing bad and sometimes faux data, non processing payments correctly and not taking appropriate steps to rectify situations when borrowers brought upward these complaints.
The CFPB as well alleges that Navient didn't allow some borrowers to discharge their loans when they qualified for it. "Severely and permanently disabled borrowers with federal pupil loans, including veterans whose disability is connected to their military service, have a right to seek loan forgiveness under the federal Total and Permanent Disability belch program," the CFPB says. "Navient misreported to the credit reporting companies that borrowers who had their loans discharged under this program had defaulted on their loans when they had non."
Navient filed a movement to dismiss the conform in 2020, but the entreatment failed. As of early 2022, the CFPB lawsuit is still ongoing.
How do the Navient lawsuits impact my student loans?
Thousands of borrowers will meet their student loans impacted in one way or some other due to the recent Navient settlement, whether through loan forgiveness, restitution payments or amend customer service. Borrowers don't need to do anything in lodge to receive the settlement restitution or forgiveness aside from checking and updating their residential accost.
Navient has said that the recent settlement will primarily affect borrowers who took out loans for for-profit schools from 2002 to 2010 and defaulted on those loans. However, at that place's still the ongoing CFPB arrange that, if settled, could impact fifty-fifty more than borrowers.
Does Navient service my student loans?
While Navient services millions of borrowers, it doesn't service every borrower. In early 2022, it transferred its portfolio of federal student loans to Aidvantage, a servicing partition of Maximus. The company now services merely individual pupil loans and privately held FFELP Loans.
You tin can bank check your servicer with the Department of Teaching if you take federal loans. The best way to run across who services your private loans is to check your latest correspondence regarding your student loans. You can also observe the names of all servicers on your credit reports, which you tin can access for gratuitous at AnnualCreditReport.com. This lets you see all your debt, including the ones that are runaway, in default or paid off.
Adjacent steps
If you think that your lender may exist engaging in misleading or deceptive practices, here are a few steps you tin take to protect yourself and your money.
- Review and update your loan details. Whether you lot're on autopay or you haven't been able to beget to make payments in awhile, you might not know what y'all're on the hook for or even what types of loans you have. Since Navient has serviced both federal and individual pupil loans, check what blazon you take earlier exploring your options.
- Explore alternatives on your ain. You tin expect into unlike repayment options, like income-driven repayment plans, forgiveness or student loan refinancing. It's important to know your options before talking to your loan servicer and then you lot're informed about different offers.
- Enquire your servicer for options. Even if you've done all the research on your own, contacting your loan servicer is side by side. Ask it what you authorize for and how each option impacts repayment and what yous'll eventually repay over the life of your loan.
- If necessary, file a complaint. If yous call back that your loan servicer is causing yous to pay more money than you think you owe or is otherwise misleading you, consider filing a formal complaint. Y'all can do this with your lender, with your state'south attorney full general or at the federal level: the U.South. Department of Education, Federal Trade Commission or CFPB. If y'all're going to go this route, yous'll need documentation proving your case. Proceed detailed notes and records of every phone phone call and correspondence with your lender.
- Keep your contact details upward to date. If yous think that you may be eligible for restitution payments or loan forgiveness from the latest Navient settlement, cheque that your current home address is correct to ensure that you get the information you lot need.
Acquire more:
- Navient borrowers will receive $1.seven billion in student loan forgiveness
- Student loans getting transferred to a new servicer? Here'southward what you need to know
- 8 student loan forgiveness programs that could erase your debt
Source: https://www.bankrate.com/loans/student-loans/navient-student-loan-lawsuit/
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