If you’re one of the millions of Americans struggling with student loan debt, you may have heard about the class action lawsuit against Navient. It is one of the largest student loan servicers in the country. But what does the lawsuit mean for borrowers, and could you be eligible for relief? Here’s what you need to know.
What Is the Lawsuit About?
The lawsuit against Navient alleges that the company misled borrowers and increased their loan balances. According to the suit, Navient directed borrowers away from income-driven repayment plans. These plans could have lowered their monthly payments. Instead, Navient steered them into forbearance agreements. The balances of these borrowers ballooned as a result. The lawsuit also claims that Navient knew many borrowers would be unable to repay their loans. Despite this, Navient pushed borrowers into delinquency to secure preferred-lender status with schools.
What Are the Settlements?
Navient has agreed to several settlements to resolve the allegations. According to Business Insider, Navient will pay $198 million in one major settlement. In addition, Navient may collect your private student loan debts. In fact, Navient will also forgive portions of the borrower’s balances and correct negative credit reporting.
In another settlement, Navient agreed to pay $16 million. This was to resolve allegations that they had forced borrowers to pay more than necessary on their loans. Therefore, the total amount of avoidable interest charges added up to $4 billion.
Am I Eligible for Relief?
The settlements incorporate various gatherings of borrowers. Understudies who petitioned for financial protection on or after 17 October 2005 were remembered for the settlement. Their commitment to reimburse their credits prior to recording made them important for the $198 million settlement as well.
Furthermore, the $16 million settlement incorporates borrowers with government understudy loans overhauled by Navient. Borrowers who presented an ideal borrower safeguard to reimbursement guarantee are essential for the settlement. These borrowers were not required to repay their loans while their claims were pending.
What Do I Need to Do?
Guarantee your alleviation assuming you accept you might qualify. The cutoff time to present a case for the $16 million settlement was November 20, 2023. However, you can check if you meet all requirements for the $198 million settlement. For this purpose, you want an Exceptional ID and PIN situated on the settlement notice. Consult the Settlement Administrator if you have not received a notification.
What Does Navient Settlement Mean for Student Loan Borrowers?
The Navient settlements are a significant triumph for educational loan borrowers who were deluded and hurt by the organization’s practices. However, they are likewise a sign of the requirement for more noteworthy responsibility in the understudy loan industry. It is vital to help borrower’s privileges and consider advance servicers responsible when they do not go about their business.
As obligation increments and reimbursement choices get more convoluted, this turns out to be considerably more critical. As a result, these settlements emphasize the significance of these actions. In addition, contact a trustworthy understudy loan lawyer or charitable credit guide. Investigate your choices and decide whether you might be qualified for help through the Navient settlements or different projects.
Read also: State Farm Lawsuit and Settlements
Bottom Line
After all, we should say that the Navient settlements are a positive development. However, there is still a lot of work to be finished to address the understudy loan emergency. If you are struggling with debt, know that there is aid available. Moreover, you should not surrender until you find the help you merit.