Navient Lawsuits: What Student Loan Borrowers Need to Know

Consumers can check their eligibility for loan forgiveness, and educate themselves about all of their repayment options.

Navient Corp., the nation’s largest student loan servicer, is facing four lawsuits alleging that it harmed student loan borrowers throughout the repayment process.

If you have student loans you have probably heard of what most experts are calling the “Student Loan Bailout”. Much like the mortgage bailout several years ago, millions of graduates are having payments reduced and some even receiving refunds or forgiveness. According to the Washington Post, the DOE announced a plan to forgive an additional $7.7 billion in federal student loans held by an estimated 387,000 Americans. This comes months after Sallie Mae, also known as Navient agreed to pay a combined $139 million in refunds to borrowers.

The CFPB alleges that since at least January 2010, Navient misallocated payments, steered struggling borrowers toward multiple forbearances and deferments instead of income-driven forgiveness plans, and provided unclear information about how to re-enroll in income-driven plans and how to qualify for a co-signer release. The CFPB is asking Navient to compensate the borrowers the agency says were harmed and urges borrowers who think they may have been mislead to call the borrowers relief program to check their eligibility for income-driven forgiveness programs at (844) 500-7570.

Borrowers are rushing to enroll in these programs before they change or possibly repealed. Due to high demand the borrowers relief program has established a helpline at(844) 500-7570 and provides a free eligibility check and assistance for qualified borrowers.

The case is now moving toward the discovery process of gathering evidence, which could lead to further motions, a trial or a settlement, says Suzanne Martindale, a staff attorney at Consumers Union, the policy and action arm of Consumer Reports. The lawsuits could potentially take years to play out however regardless of the outcomes Navient Corp student loan borrowers should check to see if they qualify for an income-driven forgiveness plan to reduce or eliminate their payments and obligations.

Why is Student Loan Forgiveness Happening?

The amount of money owed by individuals continues to grow due to high compounding interest rates. This is making it even harder for many to overcome student loan debt. As a result, many Americans are finding themselves under a huge burden and cannot pay for everyday essentials including rent, mortgages, car payments and even monthly food bills. The effects of overbearing student loans are also affecting the national economy and adding to the growing financial crisis in America.

The Department of Education hopes Student Loan Forgiveness options will put more money in our pockets and stimulate the economy. Like the policy or not it may help millions of Americans get back on track.

A Common Struggle

Jeremy, a Web Designer, explains his personal struggle with student loans. He received his associates degree for Web Design from Bryant and Stratton College in 2004. Borrowing $45,000 in federal and private loans, Jeremy says he hasn’t been able to get a job in Web design because, “Everything that I had learned from my degree became obsolete even before I graduated because the technology moves so fast.” Since graduation, Jeremy has fallen behind on his loan payments, and his debt has nearly doubled to $88,000. Despite working full-time day and part-time night jobs and scaling back his expenses to the bare minimum, Jeremy says he does not see a way out of default.

How do you Get Help if you Have Student Loans?

If you find yourself burdened by the repayment of student loans, you are not alone. You are just one of the 40 million Americans who owed financial institutions more than $1.4 trillion at the end of 2017.

Despite this, there are several new programs aimed at reducing payments, forgiving, discharging or even cancelling student loans owed by millions of struggling Americans. Though Not everyone qualifies for these programs, there are several options available for any type of situation. Navient Corp, has fallen under scrutiny by law makers for not making borrowers aware of their options, and often entering borrowers in to un-beneficial forbearance’s often accruing unnecessary interest on already high balances. To know whether you are eligible for student loan forgiveness, consolidation or lower monthly repayments, call The Borrowers Relief Program Helpline at (844) 500-7570.

What is Student Loan Forgiveness?

Loan forgiveness is the cancellation of all or some portion of your federal student loan balance. Yes, that’s right—cancellation of your loan balance. If your loan is forgiven, you are no longer required to repay that loan

If you are unsure of your loan status you can do a quick check of your eligibility here as well.

Student Loan Borrowers may contact the Helpline to get information on individual borrower eligibility.

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Toll-Free: (844) 500-7570