Lawsuits

When a student loan servicer or academic institution violates state or federal regulations, such as by placing unlawful robocalls to collect debt or misleading prospective students about graduation rates or job placements, students may be eligible to file suit against these companies with the help of an experienced student loan attorney.

Navient, the nation’s largest student loan servicer, is the target of a major lawsuit in 2017 for misleading borrowers, misallocating payments, and wrongfully damaging borrowers’ credit scores. Navient’s alleged violations include:

  • Improperly allocating extra payments made by borrowers against their wishes, which created unnecessary interest and prevented borrowers from paying off their loans sooner;
  • Damaging the credit scores of borrowers in the Total and Permanent Disability (TPD) Discharge program by reporting their loans as in default rather than discharged;
  • Failing to properly inform borrowers in income-based repayment (IBR) plans of important renewal notices and deadlines;
  • Persuading IBR-eligible borrowers to instead choose forbearance, sometimes for the second time or more, generating over $4 billion in unnecessary interest charged to struggling borrowers.

If you have been a victim of debt harassment or the unlawful practices of a student loan servicer, third-party collector, or higher education institution, contact an experienced student loan attorney today for a free consultation.