Navient is one of the largest servicers of federal student loans in the country. An offshoot of Sallie Mae, it is estimated that Navient services $300 billion of government and private student loans. So, it’s a big deal for borrowers all over the country if something happens to the company. That’s why a new lawsuit from California is making big waves, but will that lawsuit affect your student loan?
How a Lawsuit Against Navient Could Affect How Your Student Loans Work
Xavier Becerra, the Attorney General of California, has announced a lawsuit against Navient for unlawful business practices. These practices are being blamed for over payments and several permanent disability discharges that were not completed.
For now, the state’s accusations are focused solely on federal student loans backed by the federal government, but it’s not alone. Illinois, Pennsylvania and Washington have also sued Navient for the same reasons. Plus, the Consumer Financial Protection Bureau is also suing Navient, accusing the servicer of misleading borrowers, failing to act on borrower complaints and harming the credit of disabled borrowers. If you have student loans with Navient, this could have several effects on your loans.
Court rulings could force the servicer to repay overcharges, fix misleading information on credit reports and it could establish new guidelines for how this servicer operates. Until that happens, student loan borrowers will need to be very careful about how they deal with Navient.
Staying educated on student loan options like federal student loan consolidation, student loan forgiveness and income-driven repayment plans are a must. Keep careful records, and make note of any Navient policy changes. Be prepared to file a complaint should you discover any malfeasances.
To learn more about the options available to student loan borrowers right now, keep following The Sader Law Firm Blog. We monitor the changes in the student loan industry and offer solutions for people who are struggling with their student loans. Contact us if you are having troubles with your student loans and you need help right away.