Published On: July 17, 2018

Misrepresenting the order in which the company would apply extra loan payments and failing to properly discharge federal student debt for borrowers with a total and permanent disability.

Navient scamAccording to articles in the Washington Post and the Los Angeles Times – at issue is a practice to mislead student loan borrowers about the important difference between forbearance and income based repayment programs.  Navient encouraged borrowers to postpone payments through forbearance, knowing that interest continued to add up, which would result in a dramatic increase in the overall debt.  When there was a most cost effective option – enrolling the borrower in an income-driven repayment plan that would avoid unnecessary fees and costs.

Navient “games” the system – steering borrowers to forbearance in order to charge higher rates

According to The Washington Post’s Danielle Douglas-Gabriel, “consumer advocates say loan servicers steer borrowers toward forbearance because it requires substantially less paperwork than enrolling them in low-cost plans that peg monthly payments to a percentage of income.  Navient has long countered that it has one of the highest rates of enrollment in income-driven plans, denying there is a nefarious plan afoot to deny borrowers the option.”

Claims against Navient and subsidiaries for providing false information.

Navient scamThe lawsuit also includes claims from Becerra that Navient’s subsidiaries violated California law by, among other things, providing false information about collection fees on loans people were trying to get out of default

Navient lied to those with disabilities.

The lawsuit also claims that Navient and its subsidiaries inaccurately tell borrowers that disability loan forgiveness requires a permanent inability to work, although no such requirement exists.

Our students can’t afford to be cheated out of any more money than they legally owe simply because Navient knew how to game the system, Becerra said in a release about the lawsuit.

Navient Overcharged military service members.

Navient scamNavient claims lies were merely “processing errors”.

REALLY!!!  Just how many “errors” do you have to make before it becomes obvious this is a standard business practice?  Just ask Wells Fargo.

More posts about Wells Fargo’s scams on their customers:


More from the Washington Post:

They would like to hear if you have experienced issues with paying your student loan? Send your comments to [email protected] Please include your name, city and state. In the subject line put “Student Loans.”

Additional articles from the Washington Post: 


 

By |Published On: July 17th, 2018|Last Updated: August 2nd, 2020|

Share this article

About the Author: Diane Drain

Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.

*Important Note from Diane: Everything on this web site is offered for educational purposes only and not intended to provide legal advice, nor create an attorney client relationship between you, me, or the author of any article. Information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state. Make sure to check out their reviews.*

Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Google Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Yelp Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Avvo Reviews
Avvo - Rate your Lawyer. Get Free Legal Advice.
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Alignable Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Better Business Bureau
5 / 5

“You folks are the BEST OF THE BEST in Arizona.” M.H.

You and Jay are the best attorneys I have ever had or needed and thank God for the Honorable Robert Gottsfield in recommending you folks – I would have never made it through the entire process without you and Jay and God Bless you both always and stay in touch as well. You folks are the BEST OF THE BEST in Arizona.

5 / 5

“My only regret is that I didn’t find Diane sooner.” K.H.

I can’t say enough good things about Diane. The way she handled my not typical circumstances was amazing. I was very nervous to start the bankruptcy process but Diane just has a very comforting way of explaining the whole process. My only regret is that I didn’t find Diane sooner. If you find yourself in a financial situation that you can’t correct on your own, please Call Diane Drain as soon as possible.

5 / 5

“Filing for bankruptcy can be a stressful life event” R.A.

Filing for bankruptcy can be a stressful life event, and selecting the right attorney can add to this stress. Diane and Jay were a pleasure to work with, and it is obvious that they are passionate about helping people get their life back on track. I would highly recommend them if you need a bankruptcy attorney.

Related Posts

  • Published On: July 24, 2022

    Want to avoid dishonest debt collectors?  Watch this video from FTC’s Consumer Advice By Joseph Ferrari,July 22, 2022 (reprint from FTC, Consumer Alerts) During Military Consumer Month 2022, the FTC [...]

  • Published On: July 20, 2022

    BEWARE OF THE SECRET COSTS OF USING ‘BUY NOW PAY LATER’!! What You May Not Know About These Services Services like “buy now pay later” now account for $100 [...]

  • Published On: June 13, 2022

    Diane Drain received the 2022 Preeminent Award and Gold Client Champion Award from Martindale-Hubbell. The 2022 AV Preeminent award is given to an "elite group of attorneys who have been rated highly by their peers [...]

  • Published On: April 18, 2022

    Education Loans Can Be Discharged in Bankruptcy Busting myths about bankruptcy and private student loans By Robert G. Cameron – APR 12, 2022 (Reprint from Consumer Financial Protection Bureau "www.CFPB.gov".  The following is an [...]

My intention is to put you back in control of your life
Start with $0 down*. We provide affordable payment plans.

FREE CONSULTATION