Navient Lawsuits: Exactly What Education Loan Borrowers Must Know

Navient Lawsuits: Exactly What Education Loan Borrowers Must Know

HOT: 21.5k views final thirty days

Navient Corp., the country’s student loan servicer that is largest, is facing four legal actions alleging so it harmed student loan borrowers through the entire payment procedure.

Pennsylvania’s attorney general ended up being the newest to register a suit, which came at the beginning of October. The U.S https://paydayloansflorida.net. Customer Financial Protection Bureau therefore the Illinois and Washington attorneys basic sued Navient in January.

The CFPB alleges that since at least January 2010, Navient misallocated payments, steered struggling borrowers toward multiple forbearances instead of income-driven repayment plans, and provided unclear information about how to re-enroll in income-driven repayment plans and how to qualify for a co-signer release among other things. The CFPB is asking Navient to pay the borrowers the agency claims were harmed.

The Illinois, Washington and Pennsylvania matches make comparable claims to your CFPB’s allegations and additionally allege that Navient, with regards to ended up being element of Sallie Mae, made subprime loans to pupils, specially those going to schools that are for-profit. Navient broke removed from Sallie Mae Bank, among the largest personal student loan loan providers, in 2014.

The allegations in Pennsylvania’s suit are “completely unfounded, ” Navient said in an 5 statement october. The organization has also rejected the allegations within the other three situations, filing motions to dismiss them. More →