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This is How Navient Lawsuit Will Affect Your Student Loans

Navient remains to be in the headlines as the student loan servicer is facing action in court brought by various states, the CFPB, and the American Federation of Teachers. Unending borrower complaints claim that the student loan service provider failed to process payments properly and didn’t inform their borrowers regarding payment options. 

What is The Navient Lawsuit, and What Does it Mean for You?

Do you have a student loan? If yes, there is a good chance it might be serviced by Navient. In their lawsuit, the Consumer Financial Protection Bureau suspected that they:

  • risked the credit of disabled borrowers, such as severely injured veterans;
  • tricked private student loan borrowers regarding requirements to release their co-signer from the loan;
  • caused borrowers to overpay for their student loans by deceiving them about their options to lower payments;
  • failed to resolve the complaints of their borrower via inaction;
  • improperly processed payments; and/or
  • presented wrong information to make obstacles to repayment.

The CFPB also claims that, many times, when borrowers inquired about income-driven repayment plans, Navient directed them toward forbearance instead.

Because of this, a lot of borrowers ended up with payments they could not afford. They paused repayment and racked up additional interest when they could’ve been on a handier income-driven repayment plan. 

The lawsuits are currently in progress. Meanwhile, you must continue to make your payments. However, you could file a complaint to the CFPB or the Department of Education. Aggrieved borrowers could possibly see compensation when the lawsuits are settled, either in the form of refund or forgiveness.

Options You May Want to Consider

If you are one of those people who are no longer happy with Navient, you may have options:

  • Refinance Your Loans

Refinancing might be your best option if you have federal loans. They will mix your loans and will present you with an interest rate according to your creditworthiness.  As a result, you will have one monthly payment.

  • Consolidation

 You might have numerous monthly payments if you have various federal and private loans. You may be able to consolidate your federal loans into one new loan and your private loans into a second loan. You are presented with a new payment due date and single payment every month for each loan, allowing you to pay it easier. You will require entering an income-driven repayment plan and doing this could save you a huge amount of money each month.

Call Your Servicer Today

It is best for you to remain in contact with your service provider. It is their responsibility to guide you. Call them if you feel like you are having trouble. Understand your options. Identify what will get you out of debt quickest but will be a manageable payment option as well.

If you feel like you are getting nowhere with your student loan servicer(s), you need the help of a licensed, skilled attorney.  Elias Dsouza has the knowledge and skills you need to get yourself back on track.  Contact Elias today for a free consultation.

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