how to get rid of navient private student loans

Last Updated on July 9, 2022 by Paschal Alvina

First and foremost, if you have a student loan through Navient, don’t start celebrating just yet. Not all loans will qualify for forgiveness, so you may still be required to finish out your loan terms. First and foremost, if you have a student loan through Navient, don’t start celebrating just yet. Not all loans will qualify for forgiveness, so you may still be required to finish out your loan terms. In this article, we will review how to get rid of navient private student loans, do i qualify for the navient lawsuit, federal student loans, navient settlement states and student loan pause.

Navient Student Loans Customer Service and Contact Details : Current School  News

There are thousands of financial products and services out there, and we believe in helping you understand which is best for you, how it works, and will it actually help you achieve your financial goals. We’re proud of our content and guidance, and the information we provide is objective, independent, and free. Read on to know more on how to get rid of navient private student loans, do i qualify for the navient lawsuit, federal student loans, navient settlement states and student loan pause.

how to get rid of navient private student loans

We begin with how to get rid of navient private student loans, then, do i qualify for the navient lawsuit, federal student loans, navient settlement states and student loan pause.

The 5 Secret Ways to Get Navient Student Loan Forgiveness

Every day, a bubble of the student loan loans is rising more and greater. Today, the United States is the highest among all other world countries in terms of the overall quantity of student credit debt. According to the Federal Reserve, the whole amount of student loan has been rising to $1.6 trillion by 2019, and various people who have taken student loan credit were 49 million in 2018. If you are one of those who is stressed by such financial burden, then you most definitely would like to hear about Navient student loan forgiveness. Through such an opportunity, you will have a fantastic chance to get rid of your outstanding amount of debt balance, and even to become eventually debt free. In this essay, we are going to look at the basic elements of Navient Student loan forgiveness program and how you may acquire it.

Navient lawsuit explained

Even though starting from the beginning of 2010, it was feasible to discover various forms of allegations against Navient. For example, the Consumer Financial Protection Bureau sued the Navient with various allegations of unlawful methods such as misallocated funds. Besides that in 2017, Illinois and Washington attorney general and CFPB charged Navient for challenging the borrowers to divert them from income-based repayment schedules. Also, there were some situations when Navient is accused for releasing erroneous information regarding the regulations of repayment plans and how to be qualified for the co-signer release.

However, in 2019 there still still more cases against Navient. For example, Pennsylvania Attorney General claims Navient for mishandling payment restrictions in terms of offering the borrower’s forbearance instead of more acceptable and superior choices such as income-driven repayment programs. Behind all of these stories, there is some good news for the borrower at finally. It worth to mention that the Consumer Financial Protection Bureau has been applying to Federal Court over the Navient’s fraudulent business practices. CFPB believes that Navient needs to be obligated to make compensation to the borrowers who have been harmed by improper commercial operations of Navient. By taking into consideration of the enormous number of cases, what seems to be definite is that most certainly Federal Court will find in favor of the borrowers in terms of Navient student debt forgiveness.

Before delving into the details

First of all, let us make it obvious that why Navient student loan forgiveness counts so much in these days. It is because Navient is only one of the large number of litigation linked to student loan difficulties. There are so many major organizations, educational service corporations, loan servicing agencies and other related institutions that have been the source of significant concerns of student loan debts. It is evident that there is an apparent student loan debt issue throughout the whole US, that is why the politicians and different forms of government agencies are fairly aware of it. By taking into mind of how dire the situation is, there is little doubt that the future wave of student loan forgiveness or discharge programs are unavoidable.

From this point of view, we undoubtedly state that it is not a time for sitting down and waiting for that advantage will come and find you. Let us take a deeper look at how you may qualify for Navient student debt forgiveness program.

How to receive Navient student loan forgiveness

It has to be highlighted that right now there are no such phrases as “Navient student loan forgiveness,” it is only an expectation or assumption. Because, neither the US Department of Education nor Federal Student Aid has been adopted precisely formal decision linked to such a situation. However, there are various secrets under Navient litigation that is an outstanding possibility for the borrowers to take the benefit of the real-time scenario. By applying the articles of the Navient complaint, you can achieve fully-funded student debt discharge and even some type of recompense if you are lucky. Here is the solution for how to acquire Navient student loan debt relief.

Navient student loan cancellation through Borrower Defense to Repayment

If you have borrowed credit from Navient, then you have a strong opportunity to be qualified for Borrower Defense to Repayment program. Unfortunately, the US Department of Education does not enable the borrower to petition for BDAR by accusing student loan servicer. However, you still have the ability to have a look at your school which is the major reason you have borrowed money from the Navient to attend it. If you identify any illegal conduct or unlawful behaviors such as any components of misleading business practice, then you can be qualified for Borrower Defense to Repayment Program.

If such a scenario is a matter of concern, you have one more option to get rid of your large loan load and even earn a definite refund. This option is Closed School Discharge Program which is designed by DOE in the objective of aiding the students who have been cheated or suffered any unlawful conduct by their school to take student credit.

How to fight to erase Navient student loans debt?

If you think that you are eligible for neither Borrower Defense to Repayment Program nor Closed School Discharge Program, don’t panic, there are still other choices. If you have Navient Federal Student loan, congratulation, you are just more lucky than private student loan debtors. To clear off Navient Federal student loan obligations, you can sue the following choices.

Apply for Income-Driven Payback plan – one of the most practical and successful solution to cope with a big quantity of student loan debts is picking a comfortable repayment plan. The income-driven Repayment plan allows you to modify your income into your monthly payments, for example even if you have no income; you will be charged for zero monthly payment.

Public Service Debt Forgiveness – it is also one of the most popular student loan forgiveness programs which span a vast region with flexible qualifying conditions. This forgiveness program is for financially supporting the borrowers who work in the public sector on government organizations.

Total and Permanent Disability Discharge – DOE creates this sort of student debt discharge program to help borrowers who are physically or mentally handicapped or who are veterans.

What are the unlawful activities that Navient alleged for?

As we indicated before, the greatest approach to substantiate your allegations against Navient is the formal complaint that Consumer Financial Protection Bureau and certain states attorneys have accused to Navient. Here are the main unlawful conduct that Navient issued for by CFPB

By the way, these were overall shortcuts of general aspects of the case, of course, you may locate additional detail to utilize in favor of your filing argument.

Final consideration

To sum up, it important to remind again that it is the appropriate moment to check your chance if you are eligible for Navient Student Loan Forgiveness or not. It is essential to speak with your lender or any other expert consultants to establish the facts.

do i qualify for the navient lawsuit

Next, we review do i qualify for the navient lawsuit, federal student loans, navient settlement states and student loan pause.

‍Navient recently agreed to eliminate $1.7 billion in private student loan debt for students who attended specific for-profit institutions between 2002-2014, live in specified areas, and were over seven months behind on their loan payments by July 31, 2021. Borrowers with federal student loans – Direct Loans, FFEL Loans, Parent PLUS Loans, consolidation loans — won’t have their debt removed.

Navient recently stated that as part of a settlement, it was paying off the sums for 66 thousand borrowers who obtained high-interest predatory private student loans between 2002 and 2014.

The biggest question individuals have is: Do I qualify for the Navient settlement?

Probably not, is the quick answer.

The settlement — which clears $1.7 billion in debt — will help fewer than 0.15 percent of all debtors.

Ahead, understand what the Navient debt forgiveness deal is and if you qualify.

How do I know whether I qualify for the Navient settlement?

On April 22, postcards were mailed to those whose debts will be cancelled as a consequence of the Navient settlement. If your debts are to be forgiven, you should get notified by the first week of May.

Until then, you can check your eligibility by checking at your student loan servicer. The firm that owns your debts is a major determinant of whether you qualify for relief.

Check out Appendix A of the proposed settlement to discover the exact eligibility requirements for loan forgiveness.

What is the Navient student loan settlement?

The Navient student loan settlement is an agreement between Navient and attorneys general for 39 states and the District of Columbia to address litigation that accused Navient of:

Navient rejected all charges and stated in a statement that it settled to avoid “additional load, money, time and distraction to triumph in court.”.

As part of the agreement, Navient would erase $1.7 billion in subprime private student loans that its predecessor, Sallie Mae, issued to students who attended for-profit colleges, many of whom had low credit scores. Many of these schools have now sealed their doors.

It would also make a modest check to 350 thousand federal student loan borrowers whose loans it handled.

Navient Settlement Eligibility: Who Qualifies for Cancelation?

Few consumers will qualify to have their debts erased as part of the Navient settlement. Here are the qualifying criteria:

In most circumstances, only loans that are still receivable or were being reported to credit bureaus as of June 30, 2021, are eligible. If the loan is past the statute of limitations for the state Navient identifies as your last known residence, then it won’t be eligible for cancelation.

For example, if your address with Navient was in Missouri, the statute of limitations is 10 years for breach of contract proceedings concerning student loan debt. The loan would be eligible for cancelation under the settlement.

Borrowers with federal student loans aren’t eligible for cancellation. But you may get a $260 check from Navient this spring if:

Learn More: $10,000 Student Loan Forgiveness

Navient Lawsuit Settlement Schools List

Eligible institutions for the settlement include prominent for-profit chains like ITT Tech and Corinthian Colleges, both of which have fallen. It also includes Art Institute, Argosy University, DeVry University, Le Cordon Bleu, and Kaplan University.

Navient settlement says

To qualify for the Navient settlement, your mailing address on file with Navient as of June 30, 2021, must have been in one of these states:

Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Vermont, Virginia, West Virginia, Washington, and Wisconsin.

States not in Navient settlement

You do not eligible for the Navient student loan settlement if your mailing address on file with Navient as of June 30, 2021, was in one of these states: Alabama, Alaska, Idaho, Mississippi, Montana, New Hampshire, North Dakota, Oklahoma, South Dakota, Texas, and Utah.

You’re not eligible for redress since your state’s attorney general didn’t participate in the action against Navient. Although you may not benefit from the settlement, you and other residents of those states may pursue separate cases against Navient to receive compensation.

Navient Settlement Application

Borrowers need not apply for the Navient settlement to get their loans cancelled. There isn’t a “Navient Settlement Application.” By July 2022, Navient will give you a letter like the one below, stating which of your loans will be canceled.

Likewise, qualifying federal student loan borrowers need not apply to have Navient mail them a check. Later this spring, Navient will send the checks automatically. The only thing you should do is contact Navient to change your postal address to make sure it has up-to-date contact information for you.

How to Join the Navient Lawsuit

You’ve already joined the Navient lawsuit the firm just resolved with the 39 state attorneys general if your mailing address on file with Navient as of June 30, 2021, was in a place that participated in the transaction.

2.6 Million Student-Loan Borrowers Could Get Rid of Debt Via Bankruptcy:  Report

The other Navient action, brought by the Consumer Financial Protection Bureau in 2017, is still unresolved. You don’t have to apply to join that case, either.

federal student loans

Now, we find out federal student loans, navient settlement states and student loan pause.

Subsidized vs. Unsubsidized Loans

The growing cost of a college degree has more students than ever borrowing to fund their bills. While some students choose for loans from private lenders, an estimated 43.4 million borrowers have federal student loans, as of 2022.

Federal direct loans may be subsidized or unsubsidized. Both types of loans provide various benefits, including flexible repayment choices, low-interest rates, the chance to combine loans, and forbearance and deferral programs. But how do subsidized and unsubsidized loans compare? We focus on the important characteristics of each form of loan so you can determine what’s suitable for you.

Who Qualifies for Federal Direct Loans?

Federal subsidized and unsubsidized loan borrowers must fulfill the following requirements:

Direct subsidized loans are only accessible to students who demonstrate a financial need. Both undergraduates and graduate students can apply for direct unsubsidized loans, and there’s no financial need requirement.

If you qualify for a subsidized loan, the government covers your loan interest while you’re in school at least half-time and continues to pay it for a six-month grace period after you leave school. The government will also pay your debt during a time of deferral.

To apply for any form of loan, you will need to complete out the Free Application for Federal Student Aid (FAFSA) (FAFSA). This form asks for information about your income and assets and those of your parents. Your school utilizes your FAFSA to evaluate which types of loans you qualify for and how much you’re entitled to borrow.

Federally-held student debt forbearance has been extended through Aug. 31, 2022 by the Biden administration.

How Much Can You Borrow?

The Federal Direct Loan Program has maximum restrictions for how much you can borrow yearly through a subsidized or unsubsidized loan. There’s also an aggregate borrowing limit.

Undergraduate Students

First-year undergraduate students can borrow a combined $5,500 in subsidized and unsubsidized loans if they’re still financially reliant on their parents. Only $3,500 of that amount may be subsidized loans. Independent students, and dependent students whose parents don’t qualify for Direct PLUS loans, can borrow up to $9,500 for their first year of undergraduate education. Subsidized loans are likewise restricted to $3,500 of that amount.

The borrowing limit increases for each following year of enrollment. The overall aggregate subsidized loan ceiling is $31,000 for dependent students. For independent students, the aggregate ceiling is raised to $57,500, with the same $23,000 cap on subsidized loans.

Beware of exploitative lenders. Large corporations have been detected unlawfully granting loans to persons unlikely to repay them and proposing federal debt deferment instead of better relief choices.

Graduate Students

Including their undergraduate borrowing, graduate and professional students have an aggregate ceiling of $138,500 in direct loans, $65,500 of which can be subsidized. Since 2012, however, graduate and professional students have been eligible exclusively for unsubsidized loans.

First-Time Borrowers

There’s a restriction on the number of academic years that you may obtain direct subsidized loans for people who fit in this group between July 1, 2013, and July 1, 2021. The maximum eligible term is 150 percent of the declared length of your program. In other words, if you’re enrolled in a four-year degree program, the longest you may obtain direct subsidized loans is six years. No such limit applies to direct unsubsidized loans.

There is no limit to the length of time you can receive a Direct Subsidized loan if the first payment of your Direct Subsidized loan takes place on or after July 1, 2021.

Interest on Subsidized and Unsubsidized Loans

Federal loans are noted for having some of the lowest interest rates available, especially compared to commercial lenders who may charge borrowers a double-digit annual percentage rate (APR):

There’s also one additional thing to note about the interest. While the federal government covers the interest on direct subsidized loans for the first six months after you leave school and during deferral periods, you’re liable for the interest if you defer an unsubsidized loan or if you put either type of loan into forbearance.

Income-driven repayment programs might mean cheaper monthly payments, but you might still be making them 25 years from now.

Repaying Subsidized and Unsubsidized Loans

You’ll have various alternatives accessible when it comes time to start repaying your debts. Unless you ask your lender for an alternative choice, you’ll automatically be enrolled in the Standard Repayment Plan. This plan sets your payback period at up to 10 years, with equal installments each month.

Graduated Repayment Plan

The Graduated Repayment Plan, by comparison, begins your payments out lower, then rises them steadily. This plan also offers a duration of up to 10 years, but you’ll pay more than you would with the Standard option because of how payments are structured. There are also many income-driven repayment programs for students who require flexibility in how much they pay each month.

Income-Based Repayment

Income-based repayment sets your payments at 10 percent to 15 percent of your monthly discretionary income and allows you to stretch repayment out for 20 or 25 years. The advantage of income-driven programs is that they can minimize your monthly cost. But the longer it takes you to pay off the loans, the more you will pay in total interest. And if your plan permits portion of your loan debt to be forgiven, you may have to disclose that as taxable income.

The positive is that paid student loan interest is tax-deductible. As of 2021, you can deduct up to $2,500 in interest paid on a qualifying student loan, and you don’t have to itemize to obtain this deduction.

Deductions decrease your taxable income for the year, which may lessen your tax payment or contribute to the size of your refund. If you paid $600 or more in student loan interest for the year, you’d receive Form 1098-E from your loan servicer to utilize for tax filing.

The government covers the interest on subsidized loans while you’re in school up to six months after graduation.

Subsidized loans have lower interest rates than unsubsidized loans.

Unsubsidized loans can be utilized for graduate school.

You don’t need to show financial necessity for an unsubsidized loan.

Subsidized loans can only be utilized for undergraduate study.

You must establish a financial necessity for a subsidized loan.

The government does not pay any interest accrued on an unsubsidized loan.

navient settlement states

Navient agrees to $1.85B student loan settlement with states. Some Democrats urge Biden to cancel $50,000 in student debt.

Navient, one of the largest student loan servicers in the country, announced Thursday it has reached a $1.85 billion settlement with more than three dozen states in an effort to resolve allegations of predatory lending and deceptive practices over more than a decade.

The resolution includes $1.7 billion in private student loan debt cancellation — owed by about 66,000 borrowers nationwide and originated largely between 2002 and 2010 — and $95 million in restitution for borrowers, a bipartisan coalition of state attorneys general said.

Pennsylvania Attorney General Josh Shapiro, who spearheaded a lawsuit against Navient in 2017, said the loan management company steered borrowers further into debt through forbearance practices, which allowed borrowers to temporarily postpone repayment while still being charged interest. He also accused Navient of engaging in the use of risky subprime private loans for students to attend for-profit colleges, some with dubious track records, while knowing those borrowers would be unable to repay their debts.

“Navient repeatedly and deliberately put profits ahead of its borrowers — it engaged in deceptive and abusive practices, targeted students who it knew would struggle to pay loans back, and placed an unfair burden on people trying to improve their lives through education,” Shapiro, who co-led the settlement, said in a statement.

Under the agreement, Navient is denying it violated consumer protection laws or caused borrowers harm.

“The company’s decision to resolve these matters, which were based on unfounded claims, allows us to avoid the additional burden, expense, time and distraction to prevail in court,” Mark Heleen, Navient’s chief legal officer, said in a statement.

Navient, based in Wilmington, Delaware, was formed in 2014 when Sallie Mae, the largest servicer of the federal government’s portfolio of direct student loans, split into two companies. Navient says it has served 12 million student loan borrowers with $300 billion worth of loans.

In September, the company announced it would no longer service federal student loans.

The latest action comes as student loan borrower advocates and some Democratic lawmakers continue to put pressure on the Biden administration to cancel student debt and grant greater financial relief amid the pandemic. More than 44 million Americans owe about $1.7 trillion in student loan debt.

Still, student loan borrower advocates praised the settlement with Navient as an important win.

“Borrowers may not be able to enjoy Navient CEO Jack Remondi’s $8 million salary, his three homes, or his use of the company’s private jet. But they can rest a little bit easier knowing that a measure of justice has been served,” said Mike Pierce, executive director of the Student Borrower Protection Center, a consumer advocacy group.

Aside from Pennsylvania, the other states that joined in the settlement were: Arizona, Arkansas, Colorado, California, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oregon, Rhode Island, South Carolina, Tennessee, Vermont, Virginia, West Virginia, Washington and Wisconsin. Washington, D.C., is also included.

Under the agreement, which still requires court approval, borrowers who are subject to benefit do not have to take any personal action and should receive a notice from Navient directly. Those who are eligible for a restitution payment will be mailed more information this spring.

student loan pause

Biden-Harris Administration Extends Student Loan Pause Through August 31

Biden-Harris Administration Extends Student Loan Pause Through August 31

Today, the U.S. Department of Education (Department) announced an extension of the suspension on student loan repayment, interest, and collections through August 31, 2022. While the economy continues to strengthen and COVID cases continue to drop, President Biden has made plain the continued need to respond to the pandemic and its economic effects, as well as to allow for the prudent phase-down of pandemic relief.

The extension will offer more time for debtors to plan for the resumption of payments, minimizing the likelihood of delinquency and defaults following commencement. During the extension, the Department will continue to examine the financial consequences of the epidemic on student loan borrowers and to prepare to move borrowers seamlessly back into repayment. This includes allowing all borrowers with stopped loans to have a “fresh start” on repayment by erasing the consequences of delinquency and default and allowing them to restart payments in good standing. The Department will also continue to provide loan relief, including to borrowers who have been misled by their institutions and those qualifying for relief via the Public Service Loan Forgiveness program. FSA will form new partnerships to guarantee that borrowers engaging in public service are instantly recognized with progress toward forgiveness, reducing bureaucracy that stops many borrowers from obtaining relief. FSA will also continue to transfer loans to servicers committed to working under new, stricter accountability requirements.

“The Department of Education is committed to ensuring that student loan borrowers have a smooth transition back to repayment,” stated U.S. Secretary of Education Miguel Cardona. “This extra extension will help borrowers to acquire greater financial stability as the economy continues to revive and as the nation continues to recover from the COVID-19 epidemic. It remains a primary goal for the Biden-Harris Administration to help students, families, and borrowers — especially those disproportionately impacted by the epidemic. During the break, we will continue our preparations to provide borrowers a new start and to guarantee that all borrowers have access to repayment options that match their financial conditions and needs.”

Today’s move is one in a series of initiatives the Biden-Harris Administration has made to help students and borrowers, make an education beyond high school more accessible, and enhance student loan servicing. In just over one year, the Department has delivered over $17 billion in targeted loan relief to over 700,000 borrowers.

Navient recently agreed to eliminate $1.7 billion in private student loan debt for students who attended specific for-profit institutions between 2002-2014. Borrowers with federal student loans – Direct Loans, FFEL Loans, Parent PLUS Loans, consolidation loans — won’t have their debt removed. Borrowers with non-federal student loans aren’t eligible for cancellation. But they may get a $260 check from Navient if they live in one of these states. If your mailing address on file with Navient as of June 30, 2021, was in one of these states: Alabama, Alaska, Idaho, Mississippi, Montana, New Hampshire, North Dakota, Oklahoma, South Dakota, Texas, and Utah. By July 2022, Navient will give you a letter stating which of your loans will be canceled.