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There are 6 lawsuits at the moment, all of which are accusing Navient Corp. of not being a fair loaning company, but in fact harming the students in the repayment process of their student loans. Below, we seek to inform you on commonly asked questions in direct relation to these lawsuits.
What Happened in the Navient Lawsuit?
The U.S. Consumer Financial Protection Bureau (CFPB) along with the attorney generals from Pennsylvania, Illinois, California, Washington, and Mississippi all sued Navient in 2017. These lawsuits claim the following unlawful courses of action by Navient:
- Misallocated payments
- Steered borrowers toward multiple forbearances instead of repayment plans
- Provided unclear information into how to re-enroll to income-driven repayment plans and how to qualify for a co-signer lease
The CFPB wants Navient to compensate borrowers who were treated unfairly in this process. Yet, Navient claims the CFPB’s allegations are “unfounded”, and says that the lawsuits are being founded upon new company servicing policies that were instated after the fact.
Is There a Such Thing as Navient Student Loan Forgiveness?
The short answer, and you will not like it, is no. The Navient Student Loan Forgiveness program is not actually real, and it is unlikely that the borrowers who were harmed during this process will not be getting their money back any time soon. This is extremely unfortunate, and while CFPB is working tirelessly to get Navient to pay what is owed, it is unlikely that it will happen for some time, if at all.
These lawsuits are unlikely to finish up for a few years, and until then, there will be no reimbursement for loans. However, it is encouraged to apply for federal student loan forgiveness programs such as Public Service Loan Forgiveness or other similar programs.
However, these options can also mean paying off student loans on time for up to and beyond 10 years in order to continue to qualify as an eligible candidate to receive such services. Ultimately, there are ways to get your loans forgiven and paid for, but you must do your research and utilize the resources that you have.
Is Navient My Student Loan Servicer?
Student loans can be tricky since your student loan servicer, the company that you make payments to each month, is not always the same company that lent you the money in the first place. In order to find out which company services your student loans, you will need to go through the following steps:
- Federal Loans: Log into your account at the Federal Student Aid website. You will need to use your FSA ID, which you used to fill out your FAFSA to apply for student loans initially. Click on the blue numbers in the loan table to view more information about each loan you have been given, including your “Current ED Servicer”. This is where you can see if Navient is in fact your student loan servicer.
- Private Loans: If there is no record of you in the federal database on the FSA website, then your loans are private. You will want to login to your online loan account, if you have one, or check your last loan statement. The company that hosts your online account or sends your statements is your student loan servicer.
- Not sure what type of loans you have? If you are unsure what type of students loans you have, you can always check your credit report. This will allow you to see all of your education debts, including both federal and private loans.
It is important to understand that Navient services both federal and private loans, so make sure to check for both in regard to these lawsuits and the effects on you.
What Else Can I Do to Protect Myself?
The first thing you should do if you discover that Navient is your student loan servicer is to switch providers. Doing this will require you to do some research into how to switch loan providers, who the best loan providers are, and so on. However, switching providers does not guarantee you will be better off, unfortunately.
You will also want to check your options for refinancing through federal student loan consolidation, or through private student loan refinancing. On top of this, you will need to stay on top of your loans. Know who you pay, what you pay and when, and whether you are being treated fairly but your student loan servicer. Watch out for companies that charge fees for student loan help, be vigilant of errors, and use your voice to file complaints when necessary! You can also check your credit report for errors.
Fedloanhelp.us is a private company and is NOT AFFILIATED WITH AND DOES NOT HAVE ANY SPECIAL RELATIONSHIP WITH THE DEPARTMENT OF EDUCATION, loan servicers or any other academic or governmental entity. You can apply for loan consolidation or other repayment options through the Department of Education (DOE) at no cost, but you are instead choosing to use Fedloanhelp.us services to assist you prepare and process the consolidation and repayment option application paperwork for programs offered by the DOE. Fedloanhelp.us does not and will not make any payments for or on behalf of Student.