‘Systematically and illegally failing’: Feds sue top student loan servicer, Navient

The Consumer Financial Protection Bureau is taking Navient, the nation’s largest student loan servicer, to court for cheating borrowers

The CFPB claims Navient steered borrowers into payment options that made more money for Navient, and made borrowers pay more for their loans than was necessary.

the CFPB claims that Navient purposefully incentivised their customer service representatives to push numerous borrowers into forbearance

Navient services 12 million student loan borrowers and over $300 billion in federal and private student loans.

Source

"At every stage of repayment, Navient chose to shortcut and deceive consumers

Among the allegations: that Navient failed to correctly apply borrowers' payments to their accounts; steered struggling borrowers into paying more than they had to; and hurt the credit of disabled borrowers, including injured veterans, by misreporting to the credit-reporting agencies the status of their loans.

Source 2

Well that's great, because I'm pretty sure I have to deal with them for my current college loans.
Apparently Navient, which manages loans for millions of students, is being accused of illegal activity at every level, to the detriment of student borrowers and for the benefit of the company. Allegations include some pretty serious things, like incorrectly applying payments made by borrowers and intentionally misreporting information to credit reporting agencies.
This isn't looking too good for Navient. What I really want to know though is what effect this will have on student borrowers like myself.

Ah, what a surprise, not. Building up the college debt bubble wasn't solely the students faults, what do you know. Happy that Washington State and Illinois are also taking action.

Plus to point this out:

Navient disputed the allegations, calling the suit a politically motivated "midnight action" two days before the Trump administration takes office.

-OP

a reply to: trollz

here's to hoping they drop my student loan debt

I just got my tax statement from Navient today. I settled with them last spring and paid in full. They reported that I didn't pay, other companies are still calling, and my credit is crap.

They put the amount we agreed would settle the account as "Interest paid on loan".

No. It was all of it.

Funny timing to see this article.

Zero Hedge has a relevant article today.

US Government Caught Massively Fabricating Student Loan Default Data

The Dep't of Education just admitted that a "technical glitch" caused them to consistently overstate the repayment rate for student loans. Almost every college has student loan default rates that are higher than what has been reported.


The worst was the University of Memphis, which just saw its delinquency rate jump a full 20% -- from 47% to 67% !!!

Don't pay.

Student loans got you down. Don't pay.

Here's how it actually works. If enough people, oh say 10-20 percent just stop paying, the whole system changes. The problem is people have a built in response to "don't pay" which is, "oh, my credit will go bad, I won't be able to borrow MORE MONEY!" What the hell kind of logic is this? I can't pay now, but by not paying I will not be able to go more into debt?

Things never change if people refuse to take a stand. Refusing to take a stand because you will not be able to get more into debt is insanity. Don't pay, and guess what, something like, "well, we got together and decided to reduce the student loan problem" which of course will just make things worse.

Stop talking, stop complaining, and stop paying. Just stop.

This is not legal advice, political advice, not financial advice, nor medical advice, not advice of any kind, this is purely for comedic effect, you should of course continue to be a slave as required by the laws created by the slave masters.