Lawsuits Against Navient: How It Affects You

If you have student loans helping you pay for college, there is a good chance that your loans are serviced by Navient Corp. If you do not know who services your loans, or who you pay regularly, now is a good time to find out.

Who is Navient?

Navient, which was formed out of Sallie Mae (one of the biggest, if not the biggest, student loans provider in the country) has recently been under fire. First the Consumer Financial Protection Bureau (CFPB), then several attorney justices, and now members of the American Federation of Teachers are filing lawsuits against Navient.

These organizations have just cause to believe there have been misallocations of payments, swindling of beheaved borrowers instead of directing them to income repayment options, and more corrupt manners of dealing with student loan borrowers, cheating them out of their money.

Navient has over 12 million customers, so this lawsuit and these allegations may directly affect you. A good first step would be to check who your student loan provider is.

The Allegations

The allegations in the Navient lawsuit claim that Navient has been misleading their clients. They claim that social workers (nurses, police officers, teachers, first-responders, etc.) are paying millions more than they need to. What they claim is that Navient intentionally misled these people into student loan repayment programs. Along with this, borrowers were led into types of forbearance not allowed for Public Student Loan Forgiveness (PSLF).

Along with these things, it has been said that Navient ignored borrowers’ best interests to avoid feeding the borrowers to their competition. The CFPB summarizes it well, stating that Navient:

  • Processed payments incorrectly
  • Set up obstacles to repayment by providing bad information
  • Failed to act when borrowers complained
  • Illegally cheated many struggling borrowers out of their rights to lower payments, causing them to overpay for their student loans
  • Deceived private student loan borrowers about requirements to release their co-signer from the loan
  • Harmed the credit of disabled borrowers, including severely injured veterans

Take This Plan of Action

It is imperative that you know your student loans options. Do the research for yourself and make decisions based on your findings according to your specific loans and servicer policies.

The next step you should take in order to make sure your student loans are protected is to find out who your student loans provider is. If you have multiple loans, you may have multiple providers. You can find out who your providers are by accessing the Federal Student Loans database and following the instructions once you have logged in using your FSA ID. If you have federal loans, you will be able to find out who your providers are through the FSA website.

However, if you know you have student loans but do not see them in the FSA database, you probably have private student loans. In this case, you will need to login to your private loans account, if you have one, or check your credit report. This will show you all outstanding educational debts you owe, and will be able to tell you who your loans servicer is.

Remember that your student loans servicer may not necessarily be the same company that loaned you money in the first place. Your student loans servicer is the company that you make loans payments to regularly.

Next, make sure to keep an organized record of all of your student loans including payment receipts, paperwork, and copies of all correspondence with the loaning company and servicer. Try to only communicate via writing rather than via phone call in order to keep a clear paper trail.

If you feel that your student loans servicer has made an error, you can file a complaint. You can also make your voice heard by mailing your complaint to the U.S. Department of Education or the Consumer Financial Protection Bureau.

Plan to Pay Off Student Loans

The only thing better than keeping a detailed record of your student loans and understanding your options to protect yourself is not having to deal with student loans at all. In order to do this, you should plan to pay off your loans more quickly in 2019, and thus, you will no longer have to monitor a student loans servicer, or deal with one at all.

Contact us today for any questions you may have regarding student loans. We are happy to help you make the most of this new year. Call today.

Please dial (844) 585-0542 to speak with a representative regarding your student loan forgiveness.

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