Credit Calculator: If we are to name one of the largest student loan service in the whole country, we will give the name of Navient. These consists of numerous borrowers who uses it to pay back their private and federal student loans. But, there are some lawsuits who hint damaging and misleading practices, which may affect student loans.
In case you have borrowed from Navient or not, the following are what the lawsuits signify for your student loans.
What are the Navient lawsuits?
These are a few of Navient legal proceedings carrying on presently in some various states which started since 2017. The following are the allegations.
In the words of the Consumer Financial Protection Bureau, Navient “illegally failed borrowers at every stage of repayment”. CFPB brought the lawsuit claims that Navient make the borrowers suffer by giving them wrong information, no correct procedure if payments and moreover, not standing responsible for solving these situations when the borrowers raised complains.
On the top of it, the legal action claims that Navient on purpose took more amount than the designated amount from the borrowers in the name of loan. CFPB is prosecuting for the borrowers to get economic relief from the mishandlings of Navient.
The lawsuit affirms that Navient directed it’s borrowers in forbearance on the other options, for e.g., income driven repayment plans. For now, forbearance has paused the student loan without making you suffer from the repayment standing, but the interest still gets accumulated while one is not making those payments. These means, the borrowers at the end paid more in the name of interest as the borrowers gone through with forbearance rather than saving more amount and choosing an IDR plan.
Expensive options adviser
Another lawsuit, A New Jersey Lawsuit filed in the month of October, 2020 ascertains that Navient continuously pushed it’s borrowers for picking out private student loans with the co-signers, although it was not done for the best suited interest of the borrower. New Jersey furthermore mentions that Navient told the borrowers that they can even have their own family members guarantee the private student loans as co-signers, but after that, it was almost impossible to let the borrowers free their co-signers from the granted loan.
What does this mean? Navient will be able to get extra payment if the borrowers fail to pay back on time by charging that extra fine amount from the co-signers of that loan.
Over charging and false information
Navient may also claim it’s borrowers that the money which they took as loan amount is much higher than the actually granted loan in accordance to New Jersey. Navient did this not only by taking the amount which was due in the past, but also the amount for the next month. This led to over paying on the part of the borrowers, often when they were unable to afford it. You can visit our website to use the credit calculator.
According to CFPB, Navient did not allow it’s borrowers to take out their loans even when they totally qualified for it.
In the words of CFPB, “ Severely and permanently disabled borrowers with federal student loans, including veterans whose disability is connected to their military service, have a right to seek loan forgiveness under the federal Total and Permanent Disability discharge program,”. CFPB also added to it saying, “Navient misreported to the credit reporting companies that borrowers who had their loans discharged under this program had defaulted on their loans when they had not.”
Navient lawsuit affecting the student loans?
These legal actions are presently going on in major cases. This means that if you have any student loan, it won’t get affected much. Although, if you feel like you are facing certain issues with the student loan servicer, you may follow the steps given below to get the surety that it is working for you best interest. You can visit our website to use the credit calculator.
- Review your loan details. If you are paying in an automated mode or couldn’t pay within these few months, you may not know what are you for the hook or what is type of loan you have. As Navient provides private as well as federal student loan lenders, you must check what you have before getting onto exploring the options available. You can visit our website to use the credit calculator.
- Explore alternatives on your own. You may find out other repayment options that are in store for you. For e.g., income driven repayment plans, forgiving student loan or student loan refinancing. It is most important to know the options available for you before having a talk to your loan servicer so that you are aware of the other offers.
- Ask your servicer for options. If you have already done with the research work on your own terms, the next step is to contact the loan servicer. It is your responsibility to enquire whether you qualify for the loan and all the other options which will have an effect on the repayment scheme. Also, know it well, that what is the amount that you will repay over the whole life of the loan you have taken. If by any chance the lender you opted for tells you that you do not qualify for the loan for such and such programmes, or he/she may direct you for some expensive loans, you may understand that it’s fraud. You can visit our website to use the credit calculator.
- If necessary, file a complaint. If you feel like that your loan granter is charging some extra amount of money than actually the owed amount or is in any way misleading you, do file a formal complaint. You may do these with the lender with the help of state’s attorney general or at the federal level : the U.S. Department of Education, Federal trade Commission or CFPB. If you will have to lodge a complain, you need to have proofs for your case. It is necessary to save all the records of each phone call and correspondence with your granted loan lender. You can visit our website to use the credit calculator.
Navient provides services to the student loans?
The Navient doesn’t service every borrower, it Actually services millions of borrowers. Alongside, it also provides federal and private student loans. If you are having federal loans, you may check your servicer with the help of the Department of Education. To let you know, one of the best ways of checking your service provider is to check the latest correspondence regarding the student loan which you have taken. Also, if you haven’t paid within this while and want to check out your credits, you may do it at AnnualCreditReport.com. This site will help you with all the necessary information about your payments. You can visit our website to use the credit calculator.
Navient to forgive students’ loan payments?
One of the Navient legal proceedings was done in July 2020, but no economic damages will be allowed to the borrowers who are affected. Navient will carry out improved training for the employees regarding PSLF.
Also, it is likely that in the time coming, the law suits will be providing the affected borrowers fiscal compensation, but it is not possible that Navient will be completely forgiving the payments of student loan. You can visit our website to use the credit calculator.
A good number of legal proceedings are still ongoing with their work through the legal process. Navient needs to face up numerous legal battles on how it deals with student loans. Many people are accusing the service provider of misleading borrowers, squeezing more money from the borrowers, telling false information about their loans. Thus, there is still a chance that the latest borrowers may be seeing it’s effect. You can visit our website to use the credit calculator.
Thus, from this article, we came to know how some unfaithful people cheat us, taking the advantage of their good will. It’s high time, we must say a ‘No’ to it. Hopefully, you got to understand that misleading Navient well enough from the above write up. Please provide us with a comment of yours in the box given below. Thank you. You can visit our website to use the credit calculator.