The Navient Student Loan Lawsuit: How To Get Your Piece of the $40 Million

Navient Student Loans Lawsuit: How You Can Take Action

What is the Navient Student Loan Lawsuit?

These lawsuits started with a single case filed by the Attorneys General of Illinois and Washington State in 2015, and soon hundreds of individual lawsuits followed from across the nation.

One of the common themes in the lawsuits, and the findings of the court, is that Navient (which services both private and federal loans) engaged in predatory practices that harmed borrowers. Many of the consumer complaints have to do with the high cost of the company’s services, which include placing “unqualified” employees on the borrowers’ accounts. Navient denies any wrongdoing.

How to get your piece of the $40 million

The most important takeaway from this lawsuit is that it shows that companies are willing to commit fraud against students on behalf of their federal and state government customers. The most obvious example here is in student loan servicing. Even before the government’s efforts to consolidate these contractors, Navient was racking up billions in legal settlements and damages.

Navient is not the only company committing fraud against students, of course. The Consumer Financial Protection Bureau (CFPB) estimates that 40% of students repay their loans incorrectly – often taking longer than they should to pay back their loans.

What are some common questions?

What forms can I use?

How long will it take?

Who is the right attorney to hire?

You should also be aware of several scams, including the IRS scams and the GoFundMe scam, which are increasingly difficult to get people to contribute money to legitimate causes.

On Oct. 30, the Department of Justice announced a $60 million settlement with Navient over allegations that the student loan servicer engaged in unfair, deceptive and abusive practices. The settlement was aimed at resolving a lawsuit filed against the company in 2017.Attorney General Jeff Sessions released a statement about the settlement, saying “Too many borrowers have been harmed by Navient’s dishonest and unfair practices.

Is this just for me?

I bet you’re wondering why the Federal Government is even suing Navient. Well, they didn’t always have a presence in the student loan market. In fact, it wasn’t until 2010 that the Federal government began purchasing student loans in the private market.

If you go back just a few years in time, you’ll see that almost all of the student loans went to Sallie Mae. They weren’t really owned by anyone. They weren’t owned by the Federal Government. In fact, they didn’t even take student loans. They only took all the loan interest that was owed.

But once the Private Loan Program was introduced, Sallie Mae could legally take on student loans because they were a Federal Government contractor. They just had to make sure that the loans were kept out of default.

Can I get my loan forgiven?

An estimated 2.1 million people are due to get some or all of their federal student loans wiped away from underperforming colleges and universities. The total value of those loans is $335 billion.

Navient is one of the largest of the servicers servicing these loans, a fact that is known by the Consumer Financial Protection Bureau which has begun to sue the company for defaulting on student loans. The company holds more than $300 billion in federal student loans for around 44 million people.

The CFPB alleges that Navient steered students toward paying too much on their loans by letting them fall behind.

The California lawsuit is the first time the CFPB has sued a servicing company over student loan practices.

What are the success rates for these lawsuits?

Filed in District Court: 98 percent successful

Filed in Court of Appeals: 80 percent successful

Filed in Supreme Court: 0 percent successful

WHAT is Navient doing to combat these lawsuits?

Navient is vigorously contesting the class action lawsuit. In fact, it’s being aided by the U.S. Department of Education and the Consumer Financial Protection Bureau. Both are willing to lend their support to Navient by arguing that the plaintiffs in the cases don’t have enough in damages to take them to court.

The case isn’t likely to end anytime soon, as a trial is already slated to begin in January 2018. The two sides will go to trial every few months, as the plaintiffs ask the court for permission to submit more claims.

Am I eligible to join this lawsuit?

The debt settlement industry is filled with abusive companies and questionable practices. However, the Navient student loan lawsuit is different.

That’s because the lawsuit isn’t suing the company – which is being sued by the Consumer Financial Protection Bureau – or a third-party company, but a subsidiary of the company that manages your student loan payments.

This subsidiary, part of the loan servicer Navient, manages the responsibility for the educational debt you may owe.

That means the lawyers suing Navient are suing the group that manages your loans. So if you have a problem with Navient, or if you think your student loan servicer is unfair, you may be eligible to take part in the lawsuit.

How can I join this lawsuit?

If you have been harmed by Navient’s unlawful practices and you are a student loan borrower, you may be eligible to join the lawsuit.

Click here for more information about joining the lawsuit.

What kind of results will I see if I do?

If you are accepted into the suit, you could receive a share of up to $2,500. If you are not accepted, but you believe that you have been harmed by Navient’s illegal practices, you may also be eligible to receive up to $150.

You do not need to be a plaintiff or join the lawsuit to be eligible for a share of the potential lawsuit funds.


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