Navient Lawsuit Settlements

Here on this page you’ll find info on lawsuits that Navient has been forced to settle and details on what the settlement entailed.

Navient loan forgiveness lawsuit settlement

Navient recently (April 2020) settled the action brought against it by student borrowers from a large education union.

The Navient loan forgiveness lawsuit was brought by the American Federation of Teachers in the New York federal court in October 2018.

Like other lawsuits against Navient, this one accused the student loans servicing giant of misconduct.

In this case the lawsuit alleged Navient misdirected the plaintiffs – who were all public sector employees – into student loan repayment and forbearance programs when they should have been placed in the Public Service Loan Forgiveness program.

This program allows public servants such as teachers to have their loans forgiven after meeting certain hurdles.

Instead the plaintiffs continued to pay interest on their loan balances and Navient continued to accrue fees.

The judge hearing the case dismissed the majority of the claims in the suit, but Navient opted to settle the remaining claims by:

Providing $1.75m to fund a body to educate eligible borrowers about the availability of the Public Service Loan Forgiveness Program

Paying $15,000 to each of the 10 plaintiffs

Training its customer service representatives to connect eligible borrowers with the Public Service Loan Forgiveness Program

Navient Robocalls lawsuit settlement

The success of the lawsuit means that more than 17,000 people subjected to persistent “robocalls” from Navient are ruled to be entitled to share in the proceeds of a $2.5m settlement in a suit filed by Turner Law Offices.

The February ruling found that Navient violated the Telephone Consumer Protection Act by using automated dialling machines to obtain information about borrowers from third parties who were not responsible for the loans. Navient used an Automatic Telephone Dialing System (ATDS) to place calls requesting location information to third parties’ cell phones without consent.

According to the suit, the representative plaintiff’s brother had a student loan account that was placed with Navient for collection. She was listed as a reference on her brother’s student loan application without knowing. She had never had an agreement with nor provided consent to Navient to call her cell phone. The lawsuit also alleged that the plaintiff and other third parties continued to be called even when they requested no more calls. Click on the button below to contact us if you have received unsolicited calls from Navient as you may be eligible to receive compensation.