What Navient Says Its Lawsuit Means For Your Student Loans
Saturday, April 22, 2017
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What Navient Says Its Lawsuit Means For Your Student Loans - Does your pupil mortgage servicer owe you a fiduciary responsibility or are they simply there to collect your scholar mortgage bills?
Properly, the solution can also wonder you rely upon who you ask.
If you examine navient president & ceo jack remondi's medium weblog, he will let you know that "at navient, our priority is to assist every of our 12 million clients efficiently control their loans in a manner that works for their man or woman instances.”
In case you examine navient's present day court docket filing, but, you may study a greater hanging fact:
Consistent with court docket documents filed with the aid of navient, "there is no expectation that the servicer will 'act within the hobby of the consumer.'”
Right here is what you want to recognize and how it's going to impact your pupil loans:
The navient lawsuit
When you have a pupil loan, there is a great risk that it could be serviced by navient. Navient, which spun off from sallie mae and is the nation's biggest scholar mortgage servicer, has greater than 12 million clients and services extra than $three hundred billion of presidency and personal scholar loans.
In a lawsuit filed towards navient in a pennsylvania federal courtroom in january, the patron economic protection bureau (cfpb) alleged that, amongst different allegations, navient "systematically and illegally [failed] debtors at each degree of reimbursement," including:
- created barriers to repayment by way of offering terrible facts;
- processed payments incorrectly;
- didn't act when borrowers complained;
- illegally cheated many struggling debtors out in their rights to decrease bills, which triggered them to overpay for his or her pupil loans;
- deceived personal scholar loan borrowers approximately requirements to release their co-signer from the loan; and
- harmed the credit of disabled borrowers, consisting of significantly injured veterans
The cfpb also alleged that navient improperly directed debtors into forbearance when these debtors otherwise might have certified for profits-driven repayment plans, and did not effectively maintain borrowers in earnings-pushed plans informed of cut-off dates to maintain their eligibility below such plans.
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