Navient Lawsuit: Latest Update And What Student Loan Borrowers Need To Know?

What Is Navient Lawsuit: For a student, keeping track of his/her student loans along with managing the bills as well as the payments, can be quite very overwhelming on top of the stress of finalizing their course and getting a job. Therefore, it is recommended to register the help of a loan servicer company that accomplishes your loan for you as well as guide you in the correct direction for the repayment of the loan, and Navient is considered to be one of them.

Navient is considered to be one of the largest federal student loan servicers in the nation. If in case you have federal student loans, then there’s a good chance that Navient might possibly be your servicer.

Since the year 2017, Navient has been mired in an increasing number of lawsuits, comprising suits from the Consumer Financial Protection Bureau (CFPB), various state attorney generals, as well as a group of teachers.

Want to know more about Navient Student Loans and lawsuit? Read the following article until the end in order to know whether Navient student loans are the best choice for you or not. Here with the help of this article, we are going to talk about the Navient Lawsuit and its login procedure. So, without wasting any time let’s get started….

About Navient Lawsuit

With the help of this article, we are going to provide you a quick history of the Navient lawsuits. It is then going to explain briefly what they’re all about and what to expect moving forward.

The U.S. Consumer Financial Protection Bureau, as well as the Illinois and Washington attorneys general, sued Navient in the year 2017 (January). Other than that, Pennsylvania’s attorney general filed a suit in October 2017.

After that in June and July 2018, respectively, the California and Mississippi attorneys general filed suits.

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Among other things, the CFPB claims that since at least January 2010, Navient has:

  • Mismanaged the payments as they failed to correctly apply as well as to allocate borrower payments to their accounts
  • Directed struggling borrowers in the direction of several forbearances in spite of income-driven repayment plans
  • Delivered unclear information about how to re-enroll in income-driven repayment plans as well as how to qualify for a co-signer release
  • Reported loans falsely to the credit bureaus
  • Was unsuccessful to inform borrowers of IDR plan renewal deadlines

On the other hand, the CFPB is asking Navient in order to pay compensation to the borrowers the agency says which were harmed. Navient believes the CFPB’s claims are “unfounded,” as well as also states that the suits are based on new servicing standards that are being applied retroactively, as per an October 2017 fact sheet.

 Navient Lawsuit: Latest Update And What Student Loan Borrowers Need To Know?

State lawsuits

The CFPB lawsuit has been followed up with suits from the below-listed states:

  • Illinois (January 2017)
  • Washington (January 2017)
  • Pennsylvania (October 2017)
  • California (June 2018)
  • Mississippi (July 2018)

The accusations made by the attorney generals in every single of these states are similar to those which are made by the CFPB.

Teacher lawsuit

In addition to that, in October of 2018, a total of nine teachers filed suit against Navient. They were supported by the American Federation of Teachers, which is considered to be the second-largest teacher’s union in the United States.

Also, in their lawsuit, the teachers claim that Navient misinformed borrowers in public service occupations when they tried to access Public Service Loan Forgiveness (PSLF). In specific, these teachers claim that Navient tried to keep borrowers from transferring their loans to FedLoan Servicing (the exclusive servicer for PSLF) for avoiding losing the allied fees.

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Navient’s Response

Navient has been unyielding that it has done nothing wrong from the beginning onwards and that it has also serviced loans to the best of its ability.

In addition to that a rebuttal posted on its site, Navient also responded to the CFPB’s accusations point by point. Here are two of its main claims:

  • Borrowers serviced by Navient are 37% less expected to non-payment than borrowers serviced by Navient’s peers.
  • 53% of student loan balances examined by Navient for the government are enrolled in income-driven repayment programs that are more than any equivalent servicer.

And Navient also states that there’s a good reason why it acclaims forbearances so often to borrowers. It describes that forbearance is often a required tool to help people finally turn out to be eligible to enroll in IDR plans.

Furthermore, it also states that servicers are paid up to 60% less for borrowers in forbearance. In simple words, you can say that it would have no financial incentive to endorse a forbearance over IDR.

Overall, Navient feels like it’s being picked on in these suits. It resists that it hasn’t done any eviler than the other federal student loan servicers as well also states that they’ve often done better.

 Navient Lawsuit: Latest Update And What Student Loan Borrowers Need To Know?

How Can I Switch Student Loan Servicers?

Well, it is quite possible to switch student loan servicers through a federal student loan alliance or private student loan refinancing. But at the same time you shouldn’t combine or refinance solely to switch servicers, for the reason that there are possible possibilities of risks that are associated with each, says Adam Minsky, who is a Boston-based lawyer specializing in student loans. In addition to that, there’s no guarantee you’ll be better off with a different servicer.

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Navient Student Loan

Navient Student Loan is currently one of the Top 10 Student Loan Servicers that the govt has contracts with to collect and service More than $1.5 trillion in the Federal Student Loan. originally, Navient was known as Sallie Mae, it was split into two entities in 2014 and rebranded its Student Loan Servicing offshoot as the Navient. it handles about 22% of the US Department of Education’s Direct Loans, Serving almost Seven Million Borrowers with debt Totaling over $200 Billion.

Navient’s official website has some Educational Resources which help borrowers to Manage their finances. The Company also has a Mobile Application to Make the Loan Payment more convenient. All federal student loan servicers Provide some basic Repayment Options, established in the US Department of Education. Navient Student Loan also helps Eligible borrowers enroll in a handful of federal income-driven repayment programs, in which payments are round off at a certain percentage of their income.

Final Verdict

If in case your federal student loans are at present with Navient, these lawsuits might possibly have you worried. But don’t worry that much. There’s a good possibility that your loan is being serviced accurately as it should be.

If in case you notice any issue with your student loans, then simply contact Navient straightaway. But on the other hand, if you come across an issue that Navient won’t resolve, then at that time you can file a complaint with the CFPB or with the Department of Education.

In this article, we have discussed many things about Navient and lawsuit. Hopefully, this information will be beneficial for you. I hope this article has helped you to know more about the Navient lawsuit. Let us know in the comments section how the experience with this information goes for you.