New Lawsuit Accuses Navient of Obstructing Student Loan Forgiveness Cases

Written by adminOctober 4, 2018
Student Loan Consolidation

It would appear as if Navient is in more legal trouble this week. Another lawsuit is being filed against the student loan company. Navient is being accused of preventing potentially millions of service workers from obtaining legally granted student loan forgiveness. Service workers include social workers, teachers, and other public servants.

Named in the lawsuit is the American Federation of Teachers, who claims that Navient purposely misled public servants to prevent them from qualifying for student loan forgiveness. This is a 10-year process. According to federal law, those who work in a service-related field and makes qualifying payments for 10 years can have their debt wiped away.

By giving these workers the wrong information, or counseling them incorrectly, Navient isn’t being honest. That’s nowhere near enough time to counsel them on all their options. Proper understanding and counseling of student loan forgiveness takes quite a bit of time longer.

Navient’s Plan to Disrupt Student Loan Forgiveness

It’s not difficult to see why Navient would want to mislead borrowers. After qualifying payments are made, Navient sends the loan to another company. Instead, they held onto their loans longer by misleading students who qualified for student loan forgiveness.

According to Rand Weingarten, president of the American Federation of Teachers:

Navient “purposefully and systematically trapped teachers, nurses and other public-service workers under a mountain of student-loan debt rather than providing them the opportunities to reduce this debt through the public service loan forgiveness program.”

So far, representatives from Navient have declined to comment about the accusations brought against them.

To see if you qualify for student loan forgiveness, give Financial Helpers a call. We are here to be your advocate against the backdrop of shady and predatory lenders. We’ve helped thousands of students just like yourself find the program they’re qualified for. Even if you can’t get forgiveness, we help students negotiate with their lenders. Call us today at:

Call Now 844-332-2079

Looking for Guidance

Kathy Hyland, a teacher in New York, felt she was doing all the right things to obtain student loan forgiveness. She was paying her bills and did everything Navient told her to do. In her testimony against her lender, Hyland claims they misled her for three years. She found out later that the payments she made didn’t qualify for forgiveness.

“At that moment, I just needed a little bit of help — I didn’t need a handout — I needed a little bit of guidance and a little bit of understanding,” said Melissa Garcia, another teacher from New York. Garcia made 37 qualifying payments. At least, Nevient said they were qualifying, only to deny her later.

http://financialhelpers.com/trump-administration-signs-massive-student-loan-forgiveness-bill/

These are just two of hundreds of similar cases where teachers and other service workers are lied to by Navient. They were advised to take actions that ultimately disqualified them for student loan forgiveness. By disqualifying them, they still were forced to keep paying Navient rather than having their cases transferred over to another company.

Everyone who has a student loan needs to do their own research. Don’t just accept what your lender says. They have every reason to not be truthful. They want their money, and they will get it. Unless, of course, you know your rights. Keep following Financial Helpers for more information about this lawsuit.

What This Means for You

Can you imagine working for months and years paying your student debt down, only to find out your lender was lying to you? Make no mistake about it, they want your money. Lenders will do everything within their power to get every dime. Even if you qualify for programs that make life easier for you, it doesn’t matter. They are on you like sharks smelling blood in the water.

As student loan debt surpasses $1.5 trillion, the lenders are loving every minute of it. Even the government-appointed student loan watchdog has stepped down from his position. There are so many fraudulent cases out there today, it almost seems helpless for millions of Americans.

You’re Not Alone

Don’t let your lender sell you on their lies. If you have student loan debt, help is here for you. A single call to Financial Helpers can determine whether you qualify for student loan forgiveness. We understand the complications and burdens your loans cause, which is why we advocate for thousands of students across the nation.

Even if you don’t qualify for student loan forgiveness, there are numerous options at our disposal to help make repayment manageable. You need a plan that will fit your lifestyle and your budget, not one that prevents you from living life on your terms. Don’t let student loans hinder you any longer. To learn more about qualifying for student loan forgiveness, you can call us at:

Call Now 844-332-2079

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Another State to Sue Navient Over Student Loan Deception

Written by adminJuly 2, 2018
Student Loan Consolidation

In the waning days of President Obama’s administration, the Consumer Financial Protection Bureau began to take notice of Navient’s loan practices. Complaints were coming in from all corners of the country, eventually leading to the company getting sued.

As light began to shine upon their deception, which have cost their customers millions of dollars, whole states began to jump into the mix. Illinois, Pennsylvania, Washington, and now California joins in the suit against them.

As one of the largest loan collection agencies in the country, they are the one of the eight companies hired by the government to reclaim the over $1.4 trillion worth of debt owed. Navient services 12 million borrowers themselves.

Xavier Becerra, Attorney General of California, said he was going to push a lawsuit with the Superior Court to look at how Navient potentially misguided borrowers on how they should get their debts paid. Using deception, they were able to scam their customers out of millions all over the country.

“Navient’s loan servicing abuses have compounded the misery of parents and students who sacrificed to pay for college,” Mr. Becerra said in a statement that includes accusing Navient of breaking state laws that include false advertising and prohibiting competition.

Of course, Navient disputes the charges by calling them unfounded and vows to fight back. They feel that too many families get angry at the system and the banks who give student loans instead of the education system itself.

John F. Remondi, the chief executive at Navient, said, “this is another attempt to blame a single servicer for the failures of the higher education system and the federal student loan program to deliver desired outcomes.”

Despite their denial of having done anything wrong, this isn’t the first time Navient has been accused of defrauding borrowers and so far, it’s not looking too good for them going forward. Navient requested in Pennsylvania to have the federal consumer bureau’s lawsuit tossed out, but the judge denied the request.

Individual borrowers are seeking lawsuits as well. A case in Florida was ordered to move forward after the company sought to declare they are exempt from having a borrower sue them, which is a federal law.

This is an obvious nightmare situation for Navient, who is fighting tooth and nail to keep these cases from ever making it to court.

The moral of the story? Do your own research when it comes to your student loans. There are legitimate government programs out there designed to help you. The banks and loan companies aren’t looking out for your best interest and will find any opportunity to gouge you out of more money if you’re not careful.

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