Navient Sued For Not Releasing Co-signers On Private Student Loans

/, Trending/Navient Sued For Not Releasing Co-signers On Private Student Loans

Sheryl S

Sheryl believes education should be designed to advance someones skill-set without being burdened with large amounts of debt.She writes on the topic of education and the impact it has on our society.She has been writing for Challengestudentdebt.com for a little over a year.

Navient Lawsuit Unveils Private Student Loan Borrowers Lied To

Navient, formerly known as Sallie Mae Inc. is being sued for not releasing co-signers on private student loans. The company provides service to over 12 million student loan borrowers in the United States and  includes over 6 million people under a contract held with the U.S. Department of Education for a total of over $300 billion in private and federal student loans.

Navient’s primary responsibilities as a loan service include providing assistance to borrowers to educate them on enrollment and maintenance of alternative payment plans, communicating with student loan customers regarding their loan repayments and options, and the managing of student loan accounts including maintenance of monthly payments.

Unfortunately, according to the lawsuit, those dealing with the company experienced severe service failures that went well beyond enrollment and renewal of affordable payment plans. As a result, financially vulnerable students were unable to secure the benefits of plans which were intended to prevent the burden of student debt at unaffordable levels. In addition to not providing these key services, Navient also relayed erroneous information to consumer reporting agencies for thousands of its permanently and totally disabled individuals and veterans. This was accomplished by misrepresentation of loan discharge due to disability as loan default by its disabled borrowers to consumer reporting agencies, damaging their credit rating

Further to these actions, Navient and its subsidiaries delayed or denied access to another loan features by withholding information regarding loan criteria which would discharge borrowers’ co-signers from their obligation. This feature, common on many private student loans which require a co-signer, relieves the co-signer from the agreement provided the borrower has met specific criteria, such as making a predetermined number of payments consecutively. Instead, Navient encouraged students to make early payments or extra payments in advance in order to skip a payment later, causing the consecutive counter to reset to zero. Anyone who paid in advance and took Navient up on their offer to skip a payment was inadvertently tying their co-signer into their obligations for an extended and unnecessary period.

In addition, Navient repeatedly processed private and federal student loan payments made by borrowers incorrectly over their various accounts for months, and resulted in extra charges or for portions of loans to fall into default status. When borrowers noticed the errors and contacted the company, they continued to misapply payments to the borrowers’ loan accounts for many months, further damaging the student loan borrowers’ credit and financial stability.

As a result, since July 2011, tens of thousands of borrowers and co-signers have filed complaints with Navient , the Consumer Financial Protection Bureau, and other regulatory and government agencies due to the difficulties they have encountered in their attempts to repay their student loans or with access to  loan repayment programs. These actions have placed co-signers in precarious positions and increased the overall bottom line on their credit scores in the way of overall debt for well beyond the intended duration. The lawsuit seeks to end these unlawful financial practices and find permanent relief, restitution, refunds, civil penalties, and other relief for those who have had their rights under Federal consumer law violated.

Categories: Private Student Loan Relief, Trending|
  • Sheryl S

    Sheryl believes education should be designed to advance someones skill-set without being burdened with large amounts of debt.She writes on the topic of education and the impact it has on our society.She has been writing for Challengestudentdebt.com for a little over a year.

    Find Out If You Qualify For Hardship Relief


    Tell Us About Your Situation

    Hardship Form
    Sending

    By entering phone number and email you're acknowledging that you will receive communication from Challenge Student debt regarding your student loan relief options via text, email and phone.  Help is on the way.

    *Please note that all calls with the company may be recorded or monitored for quality assurance and training purposes. Challengestudentdebt offers enrollment in programs that best fits the consumers needs. Not all debts are eligible for enrollment; client must be in financial hardship to enroll. If client decides on enrolling in debt settlement, clients who are able to stay with the program and get all their debt settled realize approximate savings of 50% before fees. Fees are typically half of the monthly payment required by creditor. Maximum fee is 20% of debt enrolled, for a maximum of 24 months. Not all clients complete the program for various reasons, including their ability to save sufficient funds. Estimates based on prior results, which will vary based on specific circumstances. The program does not guarantee that you will be debt-free within a specific period of time. The company does not assume consumer debt, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice or credit repair services. Not available in all states. Please contact a tax professional to discuss tax consequences of settlement. Read and understand all program materials prior to enrollment, including potential adverse impact on credit rating. The program may result in you being subject to collections or being sued by creditors or collectors and may increase the outstanding balances of your enrolled accounts due to the accrual of fees and interest. However, negotiated settlements the company obtains on your behalf resolve the entire account, including all accrued fees and interest. In addition the company will provide a contracted attorney if required.

    Or Call Now: 855-980-6818

    Privacy Policy

  • Sheryl S

    Sheryl believes education should be designed to advance someones skill-set without being burdened with large amounts of debt.She writes on the topic of education and the impact it has on our society.She has been writing for Challengestudentdebt.com for a little over a year.

    Meet Attorney Binh Bui

    Binh Bui Private Student Loan Hardship Program
    Attorney Binh Bui, is an active member of the California Bar and has been involved in developing and managing debt relief programs for over ten years.  Over the past three years he saw that many individuals struggling with their monthly payments on their Private Student Loans were not being provided many relief options by their creditors and had very limited options for help.

    Because of this, he developed a Private Student Loan Relief Program for individuals going through financial hardship, creditor harassment and legal threats.  The program works to get individuals who qualify a significant reduction in debt, interest and payments.

    *the program developed by Binh Bui is managed by a company and is not a law firm.  Binh Bui is involved in that company

  • Sheryl S

    Sheryl believes education should be designed to advance someones skill-set without being burdened with large amounts of debt.She writes on the topic of education and the impact it has on our society.She has been writing for Challengestudentdebt.com for a little over a year.

    Find Out If You Qualify For Hardship Relief Based On Education Fraud

    Get Started With FREE Private Student Loan Review!

    fb form - challenge
    Sending

    Prefer Phone Review? Call Now: 866-605-7167

    By entering phone number you’re acknowledging that you will receive communication from Challenge Student debt regarding your student loan options via text and phone. Your information will not be passed or sold to any 3rd parties

  • Sheryl S

    Sheryl believes education should be designed to advance someones skill-set without being burdened with large amounts of debt.She writes on the topic of education and the impact it has on our society.She has been writing for Challengestudentdebt.com for a little over a year.

    Find Out If You Qualify For Hardship Relief On Your Private Loans

    Get Started With A Review Via Text Now!

    Name, Phone, Zip
    Sending

    Prefer Phone Review? Call Now: 855-980-6818

    By entering phone number you’re acknowledging that you will receive communication from Challenge Student debt regarding your student loan options via text and phone. Your information will not be passed or sold to any 3rd parties

  • Sheryl S

    Sheryl believes education should be designed to advance someones skill-set without being burdened with large amounts of debt.She writes on the topic of education and the impact it has on our society.She has been writing for Challengestudentdebt.com for a little over a year.

    Find Out If You Qualify For Relief Programs

    Get Started With A Review Now!

    site form - challenge
    Sending

    Prefer Phone Review? Call Now: 855-980-6818

    By entering phone number you’re acknowledging that you will receive communication from Challenge Student debt regarding your student loan options via text and phone. Your information will not be passed or sold to any 3rd parties

  • Sheryl S

    Sheryl believes education should be designed to advance someones skill-set without being burdened with large amounts of debt.She writes on the topic of education and the impact it has on our society.She has been writing for Challengestudentdebt.com for a little over a year.

    Find Out If You Qualify For Hardship Relief On Your Private Loans

    Get Started With A Review Via Text Now!

    Name, Phone, Zip
    Sending

    Prefer Phone Review? Call Now: 855-980-6818

    By entering phone number you’re acknowledging that you will receive communication from Challenge Student debt regarding your student loan options via text and phone. Your information will not be passed or sold to any 3rd parties

  • Sheryl S

    Sheryl believes education should be designed to advance someones skill-set without being burdened with large amounts of debt.She writes on the topic of education and the impact it has on our society.She has been writing for Challengestudentdebt.com for a little over a year.

    Find Out If You Qualify For Hardship Relief Based On Education Fraud

    Get Started With A Review Via Text Now!

    Name, Phone, Zip
    Sending

    Prefer Phone Review? Call Now: 866-605-7167

    By entering phone number you’re acknowledging that you will receive communication from Challenge Student debt regarding your student loan options via text and phone. Your information will not be passed or sold to any 3rd parties

  • Sheryl S

    Sheryl believes education should be designed to advance someones skill-set without being burdened with large amounts of debt.She writes on the topic of education and the impact it has on our society.She has been writing for Challengestudentdebt.com for a little over a year.

    Start Your Student Debt Challenge Review

    site form - challenge
    Sending

    By clicking, “Start Challenge Review” you are acknowledging that you will receive communication from Challenge Student debt regarding your student loan options via text, email and phone. Your information will not be passed or sold to any 3rd parties