The lawsuit alleges that Navient systematically misdirected borrowers into student loan repayment programs and kinds of forbearance, which don’t qualify for Public Service Loan Forgiveness, which enables public servants to possess their federal student loans forgiven after meeting certain requirements.
The lawsuit also alleges Navient ignored borrowers’ best interests — in violation of its government contract — to stop borrowers from moving to FedLoan (the student loan servicer that administers the general public Service Loan Forgiveness program), in order that Navient could still earn fees.
As a result, the plaintiffs claim that teachers, nurses, first responders, social workers and other public servants are paying many dollars quite they otherwise should in student loan payments.
“Navient has purposely and systematically trapped teachers, nurses and other public service workers under a mountain of student debt rather than providing them with accurate information about their loan options,” Randi Weingarten, president of the American Federation of Teachers, said.
The Public Service Loan Forgiveness Program may be a federal program that forgives federal student loans for borrowers, including teachers, who are employed full-time (more than 30 hours per week) in an eligible federal, state or local public service job or 501(c)(3) non-profit job who make 120 eligible on-time payments.
Navient declined to discuss the lawsuit, which was filed in U.S. District Court within the Southern District of latest York.
Navient has been sued by five states, including California, Illinois, Pennsylvania, Washington and Mississippi, who have alleged improper actions on behalf of student loan borrowers.
If you happen to have a large amount of student loan, then you might be highly interested in reducing your monthly loan payments or getting out of debt as fast as possible. Having a student loan down your throat can be a cause of constant stress and anxiety while stopping your financial growth. If the company Navient has serviced your loans, you are probably aware of Navient lawsuit by now and that those loans can be forgiven under certain circumstances. However, achieving Navient loan forgiveness might be a challenging process for students and is more problematic than it may sound. It is vital to comprehend how you and your debt fit in. As of May 2018, there are four Navient lawsuits each of them blaming the company of hurting student loan borrowers during the process of repayment and demanding Navient loan forgiveness.
Navient lawsuit was started in August 2015 when The Consumer Financial Protection Bureau or CFPB discovered a piece of hard evidence illustrating how the company is violating consumer protection laws. The Navient lawsuit can take a lot of time to conclude, and a lot of student loan borrowers are rightly concerned about the future outcome of the Navient lawsuit process.
The good news is, Navient’s request to dismiss the lawsuits which are pointed against them was denied. The Navient Corporation was claiming that States cannot control their business operations hoping to reject Navient lawsuit. What does that mean then? Well, it boosts the probability that Navient will eventually be forced to provide immense payouts to its harmed borrowers so you can get loan forgiveness. This indicates and makes clear that student loan servicers aren’t immune to the laws of the state and must be held accountable for their wrongdoings.
This is an outstanding piece of news which means we are going on the right path to receiving loan forgiveness. However, there is a small problem. The Education Department doesn’t accept Borrower’s Defense to Repayment Discharge applications which are against Student Loan Servicing Companies. It means the optimal way to get Navient loan forgiveness by pursuing a case against them is no longer an option. What you can do is to apply one against your school.