Navient Student Loan Forgiveness

Many students suffer from repayment procedures when it comes to student loans. As one of the companies which aim to “help” those students. Navient is the main topic that will be covered throughout the article. Students want to know whether or not there is a solution to their problems. They want to find a way which can help them avoid paying for student loans and earn a chance for Navient student loan forgiveness. Luckily, there are student loan consolidation and discharge programs like Borrower’s Defense to Repayment. How can students take advantage of these programs? What are the boundaries and how to apply for Navient Student loan forgiveness? These types of questions will find answers in the next few passages. Before that, let’s get into the Navient lawsuit and discuss the background story of this fraudulent organization.

Navient Lawsuit

Navient faces a number of lawsuits by the Attorney Generals of Washington, Illinois, Pennsylvania, and CFPB (Consumer Financial Protection Bureau). Several accusations point toward this company concerning mishandling the federal student loan services that they have been offering since 2010. In addition, Mississippi and California attorneys filed lawsuits in July of 2018 against Navient Corporation. Since January of 2010 Navient accused is of many other fraudulent acts including:

Mishandling payments – Navient Corp made promises to students that their application would make them better off from this complicated situation. For instance, they told students that if they work with Navient, interest rates would be lower and other such empty promises.

How Navient University deceived students?

Instead of income-driven repayment plans for students, Navient steered those struggling students toward several forbearances. This case would lead students to have additional debt in balance, and that was the main reason why Navient came up with this move. They avoid traditional ways of repayment plans and switch to add new rules which are binding for students in case they enroll in the Navient student loan repayment program. Besides these, Navient tried to obscure the loan repayment process and stop students from re-enrolling and completing annual certifications for their income-based repayment plans that they had before.

They provided unclear and dishonest information about how students can enroll in income-based repayment plans and how it is possible to use and to qualify for the co-signer release. Navient intentionally keep things unclear in order to deceive struggling students.

Currently, the Consumer Financial Protection Bureau is asking Navient Corp to compensate all the borrowers who they harmed in the process. On the other hand, Navient Corp believes that claims of CFPB are unfounded. According to the October 2017 fact sheet about the case, they claim that lawsuits are not based on their lack of professionalism and fraudulent acts; instead, they are about new servicing standards that applied retroactively.

Why is Navient Student Loan Forgiveness Lawsuit important?

The Navient student loan forgiveness crisis has been a hot topic for more than a decade now, and that is the main reason why these types of cases are essential to know, analyze, and follow. It is good to mention that this is not only the case between Navient student loan forgiveness servicing companies and ordinary American citizens; it is more important than that. The results of the lawsuit can help other victims, too, while they suffer from other fraudulent organizations who gave them empty promises and held them back. These types of lawsuits are positively impacting issues that currently happen in the USA.

Ordinary people stand their grounds against these types of massive corporations and hope to get their rights. Navient is not the first company that intended and did these acts. There are many corporations like Navient, and there will probably be others in the future. The results of these types of lawsuits can help to raise recognition of these cases and show those companies that the victims can take charge, and they need to pay back for their actions. It is not only about loan refinancing companies; besides them, several universities got many complaints about student loans.

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The Lawsuit Raises Recognition

The reputation of those organizations was tarnished by both negative consumer reviews and legal issues that attacked them. Some of those universities are Full Sail University, Heald College, Kaplan College, DeVry University, University of Phoenix, Walden University, ITT Tech, and Corinthian College. The positive side of these types of lawsuits is that they help victims to raise their voices and get the attention of formal bodies about the issues. There are several student loan consolidation, refunding, refinancing programs in the United States, so students should keep in mind that they have the chance to get back compensation from these organizations. They need to be patient and follow the process according to the rules so that they can use programs like Navient student loan Forgiveness.

What led to the Student Loan Crisis?

The student loan crisis is a result of changing rules in favor of lenders instead of borrowers. The changes happen in the mid-seventies. Student loan experts stated that it is not surprising for them because they have been warning students and the general public about this issue since the legal changes took place. Loan lenders took advantage of the opportunity and used it fraudulently to harm thousands of students who seek help. Mainly three legal acts are among triggering factors for this crisis of student loans. The first one is the 1978 Bankruptcy Reform Act, in which Congress stated that students have the right to file bankruptcy on the loans that they took during their study years. The time frame for that was considered to be the early years after they graduate. This new law made some changes to both the lender and the borrower’s sides.

great lakes student loan

How Student Loan Lenders Reacted to the Acts?

After these acts, lenders became hesitant about giving loans to specific people. After all, now they cannot force them to pay back because the government itself protected them. The second act was in 1990. The new rules were in favor of student loan lenders because the time frame for bankruptcy discharges prolonged from five to seven years. So, that means students should pay back at least seven years after they graduate before they even try to file a bankruptcy discharge for loan consolidation.

Third act regarding student loan bankruptcy discharge

The next one was signed in 1998, and it was called Higher Education Amendments. Bill Clinton modified this law, and it was definitely in favor of lenders. With this act, the government eliminated the student loan bankruptcy discharge from the list. Students asked to prove that they are facing financial struggles, and the student loan payment is the reason for that. Besides this, there were other procedures during this process from which students need to go through. For instance, the evidence by students needs to prove that this student loan payment makes suffering students cover their most essential costs such as healthcare, housing, food supply, and more.

What was the purpose of these acts?

The initial purpose of offering student loans should have been in favor of financially unstable people, though the results turned out to be different. The government aimed to give a chance to underprivileged people to study, get a job, and support him/herself. Because of these fraudulent and opportunistic companies, the hopes and dreams of those people led them to even worse situations. Not just the student lenders, but universities and colleges are guilty too. As colleges realized that now underprivileged students can take thousands of dollars to enroll in their universities, they raised the tuition fees and tried to take advantage of poor students’ hopes about a successful career.

How Navient Negatively affected the process?

As soon as Navient gets a significant role in student loan procedures, they decide to take advantage of their position. All of the steps that the Navient student loan forgiveness process had, went through one company. They worked as a loan lender, servicer, and debt collection body and, by doing so, started to engage and use the circumstances into their advantage. They put higher interest rates on loans starting from 16 percent and use default loans to take all the money that poor students got. That led to serious issues regarding Navient student loan forgiveness.

They made loads of money from students because Navient was able to give loans even for riskier borrowers. By doing so, they secured the bag and got more money for every registered loan. No matter how bad the credit history of the borrower, Navient ensured that they could get the loan as much as they wanted. Because of these opportunities, students took loans from the company, and over ten years, Navient’s student loan debt by borrowers exceeded 300 billion dollars. Despite six ongoing lawsuits, Navient continued to issue loans and earn massive money till the issue became widely known.

Who Is Responsible for Navient Student Loan Forgiveness Lawsuit?

Navient is currently facing several lawsuits from different parts, such as attorneys of five states and the Consumer Financial Protection Bureau. Each of these lawsuits against Navient is accusing the company of performing illegal and unethical business practices. Students are hopeful that they can get full Navient student loan Forgiveness and get rid of all their debt amount through loan discharge. The reputation of the Navient corp was harmed badly. We can see this from their lowest rating on the Better Business Bureau page and Consumer Affairs. Via Borrower’s Defense to Repayment program, students can enroll and avoid debt amounts by proving that Navient used unethical business practices on them too.

What about private loans?

In CFPB’s lawsuit against Navient, it is mentioned that both public and private student loan borrowers would have a chance to take advantage of the Navient Student loan Forgiveness program. Unlike other discharge programs, this one included private loans as well because both types of students were harmed from the practices of Navient. The lawsuit targets victims who suffered from those illegal actions. If we take into consideration that Navient has many unlawful acts, it is fair to say that any student has the opportunity to at least get rid of some portion of their initial debt from loans.

Who will get Refunds?

It is hard to think of a scenario that all the student loans will be forgiven and fully refunded after these lawsuits. Though there is a high chance that the majority of the students will get a refund from the Navient student loan forgiveness program, the amount of the refund will be based on the harm that students got and, of course, the state in which they live. We can classify victims in two different groups.

The first one is the students who got screwed by Navient directly. Those students wanted to get income-based repayment plans, but Navient placed their loans into forbearance. Those types of victims have a higher chance of recovering fully. The second type is the ones who experienced some kind of illegal practices toward them. However, the harm is not on the scale of the other victims that we just mentioned. Though, we think that there will be significant compensations for all the victims of Navient Student Loan.

What to do If you have Federal Student Loans?

If the student loan that you took from Navient is federal, you are in luck because you can apply for federal student loan forgiveness. Several factors can affect this process, and depending on them; you can be eligible for one of the following cases.

Income-Driven Repayment (IDR)

IDR allows students to make smaller monthly payments for an extended period. The term generally lasts for 20 to 25 years. What is the advantage of an Income-driven plan? The advantage of paying with IDR is that if students pay their debts on time annually, they will have a chance to eliminate the remaining amount after term time frame passes. The remaining debt amount will be discharged in this program. That is the best choice for people who want to get payment relief.

Public Service Loan Forgiveness (PSLF)

PSLF is only available for public personnel from various sectors. Under the IDR plan, it is possible to get loan Navient student loan forgiveness after ten years of loan payment. PSLF is only applicable for you if you work in the public sector or non-profit organization. There are other types of both public and private student loan forgiveness programs such as :

  • Total and Permanent Disability Discharge (TPD), 
  • Teacher Loan Forgiveness, 
  • Military Loan forgiveness

How to identify if your Navient Loans are Private or Federal?

The answer to this question is not straightforward because it can be either one, both, or only one. To put that into perspective, you can have private student loans that are serviced by Navient Corp, or you can have federal loans that are serviced by this corporation. There is a possibility that you can have both types of loans from Navient as well. It is better to understand the loan servicer’s role in this process to see which type of loan you have and why you need to deal with Navient.

Loan servicers control both private and private loans

  • If you have a federal loan, the US Department of Education chooses your loan servicer as your lender.
  • If you have a private loan, then your loan servicer would be chosen by a private lending organization that you choose for these operations. Some lending institutions like Navient work as both loan servicers and lenders at the same time.
  • If you get a loan from university, college or school, the respective financial aid office needs to choose the loan servicer for you.

How to File a Complaint about Navient Student Loan Forgiveness?

Since it is not allowed to file a complaint against student loan servicing companies according to the Department of Education, you cannot place a complaint against Navient either though you have the right to approach the school that you studied and force them to file a complaint against Navient. Then you can think about BDAR Discharge Applications. Though, there are some limitations to students while they decide to file a complaint against their university. In that particular case, they need to prove that the university has done illegal or fraudulent practices against them.

Now that there is enough evidence regarding the misconduct of Navient, you can use that in your favor. Right now, it is not possible to file a complaint against a student loan servicing company. However, it is better to follow the news regarding this matter and get daily updates from the Department of Education. What do you need to mention in your complaint? You need to be specific about the complaint form and mention illegal behaviors by Navient that committed against you.

How to apply?

Navient makes it easier to apply for student loan repayment programs and other private student loan forgiveness options available. You can go directly to their website to complete the forms. Moreover, you can use government-issued forms to apply for each available loan forgiveness program. Keep in mind that, Navient is your loan servicer. So, it controls the loan repayment process and is there to address your issues. If you have any questions regarding the process, Navient Corp is the first one that you need to approach.

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How to Increase Your Chances for BDAR Discharge

In your Borrowers defense complaint, there are several things that you need to keep in mind before applying. The first thing is about evidence. You need to make sure that you put all the pieces of evidence about fraudulent practices by Navient in your form. The evidence should be correct and should not be exaggerated either. During the process, if DOE found out that you lied on the protocols, this will lead them to deny your applications for the Navient student loan forgiveness. The second thing that most of the applicants do is lying about the process. So, if Navient did not do any illegal practices towards your student loan process, do not accuse them regarding that. There are other forms of applications from which you can take advantage of the case. So, keep in mind that putting falsified information on the application will only make your case worse.

They made loads of money from students because Navient was able to give loans even for riskier borrowers. By doing so, they secured the bag and got more money for every registered loan. No matter how bad the credit history of the borrower, Navient ensured that they could get the loan as much as they wanted. Because of these opportunities, students took loans from the company, and over ten years, Navient’s student loan debt by borrowers exceeded 300 billion dollars. Despite six ongoing lawsuits, Navient continued to issue loans and earn massive money till the issue became widely known.

Available Navient Student Loan Forgiveness Programs

There are several Navient student loan forgiveness programs that you can apply for. Those programs are for both private and public student loans. If you have student loan debt, you can easily find available programs according to your needs and contact with services for more information. Most of the reliable programs are the ones that offer forgiveness or consolidation based on:

  • Employment
  • Income
  • or these types of eligibility conditions

Besides, people who work in high-need sectors can benefit from these types of programs easily.

Just like public ones, private student loan forgiveness programs are available to you as well. It is almost certain that you can find a program to qualify for. So, let’s say you are not eligible for any of the available Navient student loan programs or BDAR loan discharge, what do you do next? Do not lose hope if you face this type of case and continue to search for other ways to wipe out that debt amount off you balance

student loan debt

Student Loan Discharge Programs

Not all of us are lucky enough to acquire the Navient student loan forgiveness chance and get rid of debts. So, in that case, you can still apply for loan discharge programs. For federal loans, there are programs like:

  • The Borrower’s Defense against Repayment Program
  • Federal Student Loan Bankruptcy Discharges
  • The Closed School Student Loan Discharge Program

Keep in mind that you can sue any school by the borrower’s defense as well. If your school is practicing illegal acts towards students, there are several ways from which you can go after them and switch the case in your favor. For example, The National Collegiate Trust Discharge Program, The Fed Loan Discharge Program, and The Aequitas Capital Discharge Program are among them.

Navient Student Loan Refinancing

If you have loans from Navient Corp the process of refinancing, its pros and cons can be interesting to you. There is a company that is called NaviRefi, which focused on refinancing issues. They selected a group of people and sent them an email about the offer. If you are part of the Navient victim group, you may encounter these emails. It is not a golden ticket nor anything; NaviRefi email only mentions that you are eligible for a refinancing program. The difference is that NaviRefi is providing you with cheaper interest rates in comparison with other programs. Refinancing is a great way to deal with your debt amount. Though, before doing that, there are some points which you need to know about.

What is NaviRefi?

Most people are familiar with Navient Corp, who is a student loan servicer. As we mentioned earlier, they are doing more than that and own the full lifecycle of student loans. Navient owns Earnest, which is the student loan refinancing company. They indirectly control the process from this angle too. NaviRefi is another Brand that Earnest owns and controls for the student loan refinancing process. Once students get approval for refinancing by NaviRefi (Earnest), the case will go back to NAvient Corp for loan servicing.

So, for the ones that wanted to get rid of Navient, it is not the best option. In the end, they will end up working with the same company. If you enroll in a refinancing program, the owner of the loan may change. For example, if you have a federal loan from the government and decided to employ refinancing by NaviRefi or parent company Earnest, your loan’s ownership will go from the federal government to Navient Corp.

What to consider before enrolling in student loan refinancing?

It is better to mention that NaviRefi or Earnest is a private student loan lender. AS soon as you decide to refinance both federal and private loans, they will switch to become private student loans. If your student loan is the federal type, there are two conditions in which you need to consider refinancing it with a private company.

  1. The first condition is if you are employed in the private sector.
  2. The second condition is if the total amount of the debt is two times less than your annual income.

For instance, let’s assume that you are working in a private company and have an annual income of 100.000 dollars per year. In that case, if your student loan is worth 50.000 dollars, you may consider and refinance your student loan because it is less than two times your annual income.

So, for the ones that wanted to get rid of Navient, it is not the best option. In the end, they will end up working with the same company. If you enroll in a refinancing program, the owner of the loan may change. For example, if you have a federal loan from the government and decided to employ refinancing by NaviRefi or parent company Earnest, your loan’s ownership will go from the federal government to Navient Corp.

Details

You need to educate yourself regarding the process for better results.

Interest rates

For last year:

  • Fixed Interest Rates: 3.480%* – 7.350%* APR
  • Variable Interest Rates: 2.874%* – 7.239%* APR

There is a chance for you to get discounts by signing up for the autopay system. By that, you can eliminate a 0.25 percent interest rate as well. Though, it is better to note that there are several credentials that affect interest rates. For example, your credits, the state that you are living in, and more.

  • The Borrower’s Defense against Repayment Program
  • Federal Student Loan Bankruptcy Discharges
  • The Closed School Student Loan Discharge Program

Keep in mind that you can sue any school by the borrower’s defense as well. If your school is practicing illegal acts towards students, there are several ways from which you can go after them and switch the case in your favor. For example, The National Collegiate Trust Discharge Program, The Fed Loan Discharge Program, and The Aequitas Capital Discharge Program are among them.

Fee

There is no additional fee for refinancing programs. If you encounter additional fees, it can only be for late payment. You can get information about these amounts from official sites of student loan refinancing programs. Assuming that Navient student loan forgiveness programs are not accepting your request. Then, refinancing is one of the options that you can use to eliminate the debt amount.

Amount

Refinancing by private companies can help you refinance from 5 to 150 thousand dollars. In special cases where you are sent to specific professional schools (pharmacy, medical, veterinary, dental), you can refinance up to 250.000 dollars.

Length

The length of the refinancing process may vary from 5 to 20 years. You can choose the length according to the conditions that you are in. Besides, the amount that you are going to pay can affect the length too.

How to get approved to refinance your Student Loans

Assuming that you did not get an email from student loan refinancing companies, you can still apply for them. To move forward in your application process, there are several aspects which need to be there to make you eligible for refinancing

  • You must be a citizen of the United States or permanent resident of the country
  • You must live in a state which is eligible for refinancing too
  • You must have attended the local school which receives TITLE IV federal aid for students
  • You should be employed or need to have some sort of income.

How can you protect yourself while dealing with Navient Student Loan Forgiveness?

If you have a Navient student loan, whether it is private or federal, you may have some concerns about the process. So, there are some steps that you can take to protect yourself.

Changing Servicers

If you want to switch from Navient and go to another loan servicer, it is possible. If you cannot get help from Navient student loan forgiveness, you can apply for refinancing for private loans and consolidation for federal student loans. By doing that, you can collect all the loans in one place and then pay them back gradually with fixed interest rates.

If your student loan is private, refinancing can help you to go to the new loan servicer. By doing that, you will have a chance to sign a new deal with lower interest rates. Though, make sure that you check the pros, cons, and user reviews about that servicing company.

Raise Your Concerns about Navient Student Loan Forgiveness

If you are concerned about student loans from Navient Corp, you need to carefully analyze the credit report and repayment process for possible errors. If you notice that something is not right or there are miscalculations, you need to voice your concerns and ask for more information if you are unsure about something. For complaints, you can directly apply to Navient, Consumer Financial Protection Bureau, or Department of Education.

Follow Updates regarding the Case

As you may probably know, there are several lawsuits that are still in the process against Navient. Students are still waiting for approval regarding the Navient student loan forgiveness. If you are one of the victims, you need to follow the current standing and updates about the case. It can increase your chances of getting forgiveness from loan debt.