Do you qualify for loan forgiveness or lower monthly payments?
CALL US TO FIND OUT! 800-820-8128

What is Navient Lawsuit and how this affects your student debt

Navient Lawsuit

Here it is, another record of deception of borrowers, Navient Lawsuit. Navient is a company which serves for facilitating students to pay their student loans. The Navient is a private company and shares several services, like loan repayment plans, consolidating loans and so on. The company was accused of misusing its authority to earn more money by giving wrong or incomplete information to its customers. The Navient Lawsuit was held in January of 2017, and it was revealed that the company confronted with six separate defender cases. Being one of the most famous loan servicing companies increases chances of the Navient to be sued by the cruelest and strict way. The Department of Education says that the Navient suggested a plan for its customers that made them deal with debts in a longer duration.

History of the Navient Lawsuit


Navient Lawsuit


Three points:

  • Misallocated payments
  • Defying the law of income-based payment and preferring to introduce several student loan forbearances
  • Incomplete and unclear information supply for borrowers.

In May of 2017, the investigations showed that 220 people who called regarding with loan asked to have forbearance as the only option. Those 220 calls were chosen among roughly 2400 calls. It might be less than 10 percent of total calls, but “those kinds of information spreading have brought $4 billion to them, in the time from 2010 to 2015” said Ken Sweet, a journalist in the But the CEO of the company denied sues and objections.

According to him, the company never tried to mislead or fraud any of its customers, and they kept decisive about only helping students, not lying them. On the other hand, the department of education insists on sharing audit statistics of the company, and thus it makes the case more blunder. Navient has a case, as well. According to the agreement between Navient and Department of Education the company did not take in charge of retelling all services for its clients. The Navient was a part of the Sallie Mae at first then liberated and started to work separately.

Navi’s Objection

Navient Lawsuit


The spokesperson of the company says the Consumer Financial Bureau invents new rules. “The CFB makes up new sheets from old piles and blames us for not obeying new rules in the past,” said the Navient’s one of representative workers. The company’s allegations with CFB did not end with new piles. They think that the company is free to offer anything to its costumers. “It is not the responsibility of any contractor to strictly monitor or regulate consumer-based politics of the company” the company members explained. It is worthy to note that the company regulations matched with the rules of the Department of Education and its all documents, student loan calculations have been viewed and checked, multiple times.

This lets the company be decisive on the idea that their actions are not illegal, rather flexible and consumer-based. One thing must be noted that the Navient served up to 6 million accounts with the Department of Education and over that allegation $300 billion loans both private and federal loans.

On the other hand, the company believes that the only forbearance option introduced one out of ten people. Others received information about all of the opportunities. Paul Hathwick – the company spokesman, said that all of The Navient’s audits are in line with the regulations and do not reinforce the rules set by Department of Education. The Navient served as a student servicer company. It means they took part in several loan consolidation.

Consolidation is making the loan payment process more accessible. But if you have interest rates from the different loan, the Consolidation does sum up your weight percent, but it is not a bright idea if you have servicer like Navier, you are going to take into account that they are not beneficial with the same company. Your debt of $13.000 remains unchanged, but you realize that your primary loan amounts are not changing. The $13.000 can sometimes change because the loan use accruer which increases interest but with facilitating the process.

Take another look into Navient Lawsuit


Navient Lawsuit


If you were contracted with Navier as a loan servicer, you would recheck your loan payment, and interest rate accrues again. But do not be over the moon yet. You should meet some criteria to be qualified for the Navient Lawsuit Loan Forgiveness. But if you want to receive compensation, it won’t be possible for now. Because all those kinds of complicated issues take years to be evaluated entirely and budget for it should be calculated.

Although the case with forgiveness is a little bit different, if you selected as an eligible candidate for the Navien Lawsuit Loan Forgiveness, then you will apply as one of the federal forgiveness programs. PSLF and IDR (income-driven repayment) are two outstanding examples of federal loan forgiveness programs. But at the same time, those programs do have strict regulations as well.

If your servicer was Navient

If Navient was the company where you paid your loan money, then you have a choice to change your servicer or type of the loan. There are many servicer companies like the Commonbond, the Earnest, the Sofi, the Lendkey. I will talk about companies later. You have several options as consolidating and refinancing your loans again. Refinancing your Navient loans involves choosing another private servicer.

Sofi is one of them. In the Sofi’s web page the difference between loan consolidation and refinancing was given. It was said to be that while alliance works for eligible federal loans and the clients can only get a bill, in refinancing both federal and private loans are available for refinancing after the Navien Lawsuit. Refinancing can also lower your interest rate. Overall refinancing is the excellent option but has strict rules, and not everyone can fit into eligibility shape.  

How does the Navient loan affect you?

The Navient Lawsuit is not restricted to long term student loans, but also all Public Service Loan Forgiveness programs are included. The president of the American federation says that the Navient used a variety of tools to deceive teachers, nurses and many others. The Navient insisted on answering the questions related to Public Service Loan Forgiveness.

Stepwise analysis

After finding that you are drowning in debt, you start to move. It is not crucial that someone would tell you: “Wake up, man. You are in debt.”

  • Start again. You have to change and find out who you should be asked for money. Being deceived from the first is a trauma, that creates negative immunity toward animals. Being aware of student loan options is a way out always
  • Go through the latest student loans and read about every single of them
  • Always track your payment. Don’t believe the servicer take your notes
  • Gathering information and files
  • Paying off your student loans

Every single student, who is issued with Navient Lawsuit, must follow these steps.