Navient Student Loan Lawsuits and Information

Navient Student Loan Lawsuits and Information



When you are taking out student loans, even federal student loans, you might be assigned a loan servicer, which is an organization that manages the billing and reimbursement of your stability. In 2017, the Consumer Financial Protection Bureau introduced it was submitting a lawsuit towards Navient, the biggest loan servicer firm within the nation. Read on to be taught concerning the forms of student loans that Navient presents and the way the Navient lawsuit impacts your loan or student loan refinancing.

Navient Lawsuit Allegations

The CFPB lawsuit alleged that Navient duped student loan debtors in a wide range of methods. Aside from ignoring the various complaints by the debtors, the listing of allegations contains:

  • Providing Bad Information: Navient allegedly failed to tell debtors about reimbursement choices and deadlines for choosing completely different reimbursement plans.

  • Incorrectly Processing Payments: The firm was imagined to hearken to debtors and apply their funds to the loans that the debtors directed.

  • Denied Rights to Lower Repayment Options: Federal student loans supply a number of reimbursement plan choices, together with income-based reimbursement, which permits debtors to repay much less once they earn much less. However, the CFPB alleges that Navient directed debtors to depend on forbearance, which permits the debtors to take a brief break from making funds, whereas the student loan rates of interest pile up on these funds.

As a consequence, the CFPB alleges that Navient’s actions precipitated debtors to overpay on student loans. Subsequently, lawsuits in a number of states — together with New York, Washington, Illinois and Pennsylvania — had been additionally filed towards Navient.

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If you consider you’ve been affected, you possibly can file a criticism by means of the CFPB web site. However, you typically don’t must do something to grow to be a part of the category motion. If Navient is discovered to have violated any legal guidelines and a settlement is awarded, you can be contacted concerning the right way to file your declare for a portion of that award.

How to Contact Navient About Your Student Loans

If you’ve gotten loans serviced by Navient, you possibly can attain out to the corporate with any query you might need. You can go browsing to your account by means of the Navient web site to contact the corporate. Alternatively, you may as well contact the corporate by telephone:

  • For loans issued by the federal authorities, name 800-722-1300

  • For FFELP loans and HEAL loans, name 888-272-5543

  • For non-public loans, name 888-272-5543

See: 7 Types of Student Loan Forgiveness

Types of Federal Student Loans Offered by Navient

Navient is the biggest student loan servicer, answerable for the loans of over 12 million debtors who owe over $300 billion in student loans, together with each federal and personal student loans. Here is an inventory of the forms of loans that Navient providers:

See Also: How One Woman Paid Off $81,000 in Student Loans While She Was Broke

William D. Ford Federal (Direct Loan) Program

These are loans made by the U.S. Department of Education to undergraduate and graduate students, in addition to their mother and father by means of Direct PLUS Loans for folks. These loans will be both sponsored or unsubsidized. Having a sponsored loan implies that the federal authorities pays the curiosity in your behalf through the time you’re at college.

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Unsubsidized loans accrue curiosity ranging from the day the loan is issued, however you possibly can defer making funds through the time you might be at school. Direct loans additionally embody consolidation loans.

The Federal Family Education Loan Program (FFELP)

Until June 30, 2010, the federal authorities managed student loans by means of FFELP, together with Stafford sponsored and unsubsidized loans, FFELP PLUS loans and FFELP consolidation loans. These loans had been issued by non-public lenders however had been insured by assure businesses. Even although the FFELP has been discontinued, you may nonetheless be paying again loans that had been issued below this program.

Health Education Assistance Loan (HEAL) Program

The HEAL program offered loans made by non-public lenders to graduate students in medical and health-related areas of research till this system was discontinued in 1998.

Federal Perkins Loan Program

Perkins loans are loans made obtainable to undergraduate and graduate students with substantial monetary want. The loans are made instantly by means of your college, utilizing federal authorities funds, and the rate of interest is about at 5 %.

Private Student Loans

These are loans made by non-public lenders, fairly than the federal authorities. These student loans can differ extensively with completely different rates of interest and reimbursement phrases.

Up Next: What Another Fed Rate Hike in 2017 Means for Your Wallet

This article initially appeared on Navient Student Loan Lawsuits and Information

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