In a major setback for Navient, a court has ruled against the scholar loan servicing giant, allowing a long-running lawsuit to continue.
The lawsuit was brought by Pennsylvania Attorney General Josh Shapiro, on behalf of student loan borrowers therein state. The suit alleges that Navient engaged in widespread misrepresentations and other unfair or deceptive practices regarding federal student loan repayment and forgiveness programs.
The federal student loan program may be a complicated and heavily bureaucratized system. There are numerous student loan loan repayment programs and student loan forgiveness programs available to borrowers, but their requirements have specific, and sometimes confusing, eligibility criteria. the govt contracts private companies and organizations service its sprawling federal student loan portfolio on its behalf.
Some of the more well-known student loan servicing companies, like FedLoan Servicing and Navient, are accused of widespread unfair and deceptive practices like deliberately steering borrowers into forbearance rather than telling them about income-driven repayment, or not fully informing them of important eligibility requirements for student loan forgiveness programs.
One of the particularly challenging aspects of the scholar loan system is that if a federal student loan borrower is misled by their loan servicer, seeking recourse against the servicer through a lawsuit are often difficult. so as to sue a federal student loan servicer (or other similar actor) in court for violations of its obligations, federal law has got to leave that suit to be filed through what’s sometimes called a “private right of action.”
If you happen to have a large amount of student loan, then you might be highly interested in reducing your monthly loan payments or getting out of debt as fast as possible. Having a student loan down your throat can be a cause of constant stress and anxiety while stopping your financial growth. If the company Navient has serviced your loans, you are probably aware of Navient lawsuit by now and that those loans can be forgiven under certain circumstances. However, achieving Navient loan forgiveness might be a challenging process for students and is more problematic than it may sound. It is vital to comprehend how you and your debt fit in. As of May 2018, there are four Navient lawsuits each of them blaming the company of hurting student loan borrowers during the process of repayment and demanding Navient loan forgiveness.
Navient lawsuit was started in August 2015 when The Consumer Financial Protection Bureau or CFPB discovered a piece of hard evidence illustrating how the company is violating consumer protection laws. The Navient lawsuit can take a lot of time to conclude, and a lot of student loan borrowers are rightly concerned about the future outcome of the Navient lawsuit process.
The good news is, Navient’s request to dismiss the lawsuits which are pointed against them was denied. The Navient Corporation was claiming that States cannot control their business operations hoping to reject Navient lawsuit. What does that mean then? Well, it boosts the probability that Navient will eventually be forced to provide immense payouts to its harmed borrowers so you can get loan forgiveness. This indicates and makes clear that student loan servicers aren’t immune to the laws of the state and must be held accountable for their wrongdoings.
This is an outstanding piece of news which means we are going on the right path to receiving loan forgiveness. However, there is a small problem. The Education Department doesn’t accept Borrower’s Defense to Repayment Discharge applications which are against Student Loan Servicing Companies. It means the optimal way to get Navient loan forgiveness by pursuing a case against them is no longer an option. What you can do is to apply one against your school.