Navient Lawsuits: Just Exactly What Education Loan Borrowers Must Know

Navient Lawsuits: Just Exactly What Education Loan Borrowers Must Know

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Navient Corp., the country’s biggest education loan servicer, is dealing with four legal actions alleging so it harmed education loan borrowers through the entire payment process.

October Pennsylvania’s attorney general was the latest to file a suit, which came in early. The U.S. Customer Financial Protection Bureau therefore the Illinois and Washington attorneys basic sued Navient in January.

On top of other things, the CFPB alleges that since at the least January 2010, Navient misallocated repayments, steered struggling borrowers toward multiple forbearances rather than income-driven payment plans, and supplied uncertain information on just how to re-enroll in income-driven payment plans and exactly how to qualify for a co-signer launch. The CFPB is asking Navient to pay the borrowers the agency claims had been harmed.

The Illinois, Washington and Pennsylvania matches make comparable claims towards the CFPB’s allegations and additionally allege that Navient, with regards to had been section of Sallie Mae, made subprime loans to pupils, particularly those attending schools that are for-profit. Navient broke faraway from Sallie Mae Bank, among the biggest student that is private loan providers, in 2014.

The allegations in Pennsylvania’s suit are “totally unfounded, ” Navient stated in a 5 statement october. The organization has also rejected the allegations into the other three instances, filing motions to dismiss them. In a March 2017 reality sheet, it said the CFPB, Illinois and Washington matches depend on brand brand new servicing criteria which can be being applied retroactively.

In 2017, a U.S. District Court judge denied Navient’s motion to dismiss the CFPB’s case august. More →