If you are concerned about your Navient debt, consider filing a federal lawsuit against them. Navient makes private loans to students at for-profit schools with low graduation rates. The company knew a large percentage of borrowers would not be able to repay the loans.
The lawsuit seeks to eliminate these claims. The company is fighting back. Read on for more information on the lawsuit and the process for filing one. And stay tuned for updates!
The lawsuit claims that Navient used unfair practices in servicing private student loans.
It was alleged that Navient had forced struggling borrowers into forbearance and low-cost repayment plans that caused them to default on their loans. As a result, the company will be required to pay $95 million in restitution to consumers – an average of $260 per borrower.
The settlement will cancel nearly $1.7 billion in subprime private student loans and $261 million in debt owed by 66,000 borrowers in California. Hundreds of thousands of students across the nation will benefit from this settlement.
The lawsuit states that Navient deceived private student loan borrowers by telling them they could release their co-signer after making a certain number of on-time payments.
However, the company allowed borrowers to prepay monthly installments. But when borrowers prepay an installment, Navient reset the counter on the number of consecutive payments to zero. The company failed to correct this error until the consumer contacted the company.
