Navient Lawsuits: What Student Loan Borrowers Need to Know

Navient Corp., the nation’s largest student loan servicer, is facing four lawsuits alleging that it harmed student loan borrowers throughout the repayment process. 

The CFPB alleges that since at least January 2010, Navient misallocated payments, steered struggling borrowers toward multiple forbearances and deferments instead of income-driven forgiveness plans, and provided unclear information about how to re-enroll in income-driven plans and how to qualify for a co-signer release. The CFPB is asking Navient to compensate the borrowers the agency says were harmed and urges borrowers who think they may have been mislead to call a certified enrollment center to check their eligibility for the income-based forgiveness programs at 855-888-9848.

The case is now moving toward the discovery process of gathering evidence, which could lead to further motions, a trial or a settlement, says Suzanne Martindale, a staff attorney at Consumers Union, the policy and action arm of Consumer Reports. The lawsuits could potentially take years to play out however regardless of the outcomes Navient Corp student loan borrowers should check to see if they qualify for an income-driven forgiveness plan to reduce or eliminate their payments and obligations.

How to check if you qualify for partial or total loan forgiveness? 

Navient services more than $300 billion in federal and private student loans for more than 12 million borrowers, or over a fourth of the U.S.’s 44 million student loan borrowers. It’s important to know whether you have federal or private student loans, or both. For instance, you’re eligible for income-driven forgiveness plans if you have federal loans, granted their are options for borrowers with private loans as well.

The easiest way to check your eligibility is to contact a Certified Enrollment Center at 855-888-9848 | Monday through Friday 7:00am-6:00pm pst., and ask a counselor to check if you qualify for any of the loan forgiveness programs.

If you are unsure of your loan status you can do a quick check of your eligibility here as well.

 

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