August 15, 2018

California Becomes Fourth State to File a Navient Lawsuit

At the end of July 2018, California’s Attorney General Xavier Becerra filed a lawsuit against Navient, making it the fourth U.S. state to sue Navient in support of student loan borrowers. Currently, the three other states suing Navient include Illinois, Pennsylvania, and Washington. This latest lawsuit spells trouble for the loan servicer, who in addition […]

At the end of July 2018, California’s Attorney General Xavier Becerra filed a lawsuit against Navient, making it the fourth U.S. state to sue Navient in support of student loan borrowers. Currently, the three other states suing Navient include Illinois, Pennsylvania, and Washington.

This latest lawsuit spells trouble for the loan servicer, who in addition to other state lawsuits, has been recently challenged by the CFPB (Consumer Financial Protection Bureau).

However, many critics worry that with new CFPB Director Mick Mulvaney at the helm, things could get worse for borrowers. Especially as President Trump’s efforts on student loans are carried out.

Why is California Suing Navient?

Like other attorneys general, Xavier Becerra is suing Navient on allegations that the servicer steered borrowers into repayment plans they didn’t qualify for – and in some cases, even misrepresented how much they owed.

Other allegations against Navient that are part of the lawsuit include:

  • Giving bad information to borrowers, including not fully disclosing how to recertify for income-driven repayment plans
  • Not processing payments correctly, including overpayments
  • Not properly discharging loans through the Total and Permanent Disability (TPD) program, ruining some borrowers’ credit histories
  • Not acting on borrower complaints to improve how they handle loan forgiveness and repayment

In a statement announcing the lawsuit, Attorney General Becerra said, “Navient’s loan servicing abuses have compounded the misery of parents and students who sacrificed to pay for college. Our students can’t afford to be cheated out of any more money than they legally owe simply because Navient knew how to game the system.”

How to Handle the Navient Lawsuit as a Borrower

The Navient lawsuit is an unfortunate reminder that it’s important to stay up-to-date on student loans. Otherwise, you could be led astray by your servicer. That said, here are a few ways to get informed as a borrower.

Know Your Options

With Navient giving borrowers the wrong information, it’s important to do your own research so you know what plans and programs you likely qualify for – and how they’re supposed to work.

Here you can find more information on repayment plans and forgiveness programs to help you get started.

Track Changes to the Student Loan Industry

Set up news alerts on stories that could interest you as a borrower. For example, if you have loans through Navient, set up an alert that sends you news articles on the company as they happen. You can even track specific events around the types of loans you have and the programs you’ve applied for.

Another way to stay updated on the latest student loan news is by visiting our blog, which covers everything student loan-related. To find specific stories that interest you, simply click on a topic in our “Tags” section.

Keep a Record

One of the allegations against Navient is how they misguided borrowers on repayments. This makes it extremely important to keep a record of all your payments made to Navient (e.g. receipts, statements, etc.), along with any other communication between you and your servicer.

Switch Servicers

Feel like the trust between you and Navient is ruined? By refinancing or consolidating your student loans, you can change your servicer for good.

If you’ve experienced problems with Navient as your loan servicer, you can also file a complaint with the Department of Education or Consumer Financial Protection Bureau. For Navient borrowers in California, you can reach out directly through the California Attorney General website.

Navient and Student Loan Forgiveness

Previously part of Sallie Mae, Navient is one of the largest student loan servicers in the nation. As such, Navient holds the guaranties on millions of federal and private student loans, as well as a large portfolio of private loans owned by the servicer.

Curious about student loan forgiveness through Navient? As a borrower, you might be eligible for several Navient student loan forgiveness programs available.

Public Service Loan Forgiveness (PSLF)

If you work in public service, or volunteer through certain non-profit organizations, you might be eligible for Public Service Loan Forgiveness through Navient. To qualify, all you need to do is make 120 consecutive, on-time payments towards qualifying student loans, and work in a PSLF-approved position.

Even if you’ve met the requirements before and not been approved for the Navient loan forgiveness program, there’s a new Temporary Expanded Public Service Loan Forgiveness (TEPSLF) program that could help you out.

Total & Permanent Disability (TPD) Discharge

Are you a permanently disabled individual or veteran? You might be eligible for a discharge of your loans through the Total and Permanent Disability (TPD) discharge. By proving your disabled status with the DOE, you could have the remaining balance of your student loans forgiven entirely.

Teacher Loan Forgiveness

Want to earn up to $17,500 towards your student loans? If you’re a teacher who meets Navient’s Teacher Loan Forgiveness requirements, including working full-time in a low-income school for five consecutive years, you might qualify.

Have unanswered questions about Navient? Want to learn more about Navient student loan forgiveness options? Simply fill out our online form or call (800) 771-6358 to speak with a student loan expert.