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Juni 22, 2020

Navient Lawsuits: What Education Loan Borrowers Need To Find Out

Filed under: Cashcentral — admin @ 1:08 pm

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Navient Corp., the country’s student loan servicer that is largest, is dealing with four legal actions alleging so it harmed education loan borrowers for the payment process.

Pennsylvania’s lawyer general had been the most recent to register a suit, which arrived at the beginning of October. The U.S. Customer Financial Protection Bureau while the Illinois and Washington lawyers basic sued Navient in January.

The CFPB alleges that since at least January 2010, Navient misallocated payments, steered struggling borrowers toward multiple forbearances instead of income-driven repayment plans, and provided unclear information about how to re-enroll in income-driven repayment plans and how to qualify for a co-signer release among other things. The CFPB is asking Navient to pay the borrowers the agency claims had been harmed.

The Illinois, Washington and Pennsylvania suits make comparable claims towards the CFPB’s allegations and additionally allege that Navient, with regards to had been section of Sallie Mae, made subprime loans to pupils, specially those going to schools that are for-profit. Navient broke faraway from Sallie Mae Bank, among the biggest private education loan loan providers, in 2014.

The allegations in Pennsylvania’s suit are “totally unfounded, ” Navient stated within an 5 statement october. The business has also rejected the allegations when you look at the other three instances, filing motions to dismiss them. In a March 2017 reality sheet, it said the CFPB, Illinois and Washington suits derive from brand new servicing standards which can be being applied retroactively. (weiterlesen …)