Navient Student Loan Investigation
Student loan company Navient (formerly Sallie Mae) is at the center of allegations that it steered borrowers into bad repayment programs that contained poor terms and in some instances actually increased debt. If you’re one of the many affected, we may be able to help your with your potential claim – give us a call at 1.800.887.8029.
Navient Lawsuit: What Are the Allegations?
Navient, formally Sallie Mae, is the largest student loan servicer in the United States, with more than 12 million borrowers, 6 million accounts under contract with the U.S. Department of Education, and more than $300 billion in loans extended to students. Navient processes monthly payments and directly counsels borrowers in learning about, enrolling in, and remaining in alternative repayment plans. On January 18, 2017, the Consumer Financial Protection Bureau (CFPB) filed a complaint against Navient, alleging it systematically and illegally failed borrowers at every stage of repayment including:
- Processing payments incorrectly;
- Steering struggling borrowers toward paying more for their student loans;
- Harming the credit of disabled borrowers, including severely injured veterans;
- Providing bad information in writing and over the phone; and
- Deceiving private student loan borrowers about requirements to release their co-signer from the loan
Lawsuits are alleging that Navient used these dishonest practices to make higher profits by increasing student debt payments. Navient allegedly pushed loan-holders into alternative repayment programs allowing borrowers to postpone payments while the interest on their loans continued to increase. Navient also allegedly misapplied payments to make getting out of debt more difficult. In other words, while student loan borrowers worked to get out of debt, Navient allegedly made it more difficult in order to increase its own profits.
How We Can Help
If you have student loans through Navient or Sallie Mae and have experienced repayment or other issues, we want to hear your story. If you would like more information, or would just like to talk with a lawyer experienced in this type of case, please call us at 1.800.887.8029 or fill out our free case evaluation below. Zimmerman Reed is experienced in handling consumer claims and we welcome any questions you may have.