State lawsuits against Navient

This page is to provide information on the five separate suits being pursued against Navient – the federal suit brought by the Consumer Financial Protection Bureau and the suits filed by the states of California, Illinois, Pennsylvania and Washington.

What’s the difference between the federal and state lawsuits against Navient?

The first suit against Navient was brought by the Consumer Financial Protection Bureau in the final days of the Obama administration. Following the election of Donald Trump, consumer advocates believe the federal government is less likely to pursue the case as acting director Mick Mulvaney has reduced the agency’s powers and scrapped or downgraded some of the lawsuits it is pursuing. This has seen the four states where Navient lawsuits have been lodged harden their resolve to push ahead.

California Navient lawsuit

An estimated 1.5m Navient student borrowers live in the state of California. The California suit against Navient is being brought by California Attorney General Xavier Becerra, who has issued a press release on the suit and how to register interest. The key paragraph is here below:

Californians who believe they are victims of Navient’s misconduct should file a complaint at www.oag.ca.gov/report with the California Attorney General’s Office. Victims may also call (800) 952-5225 or send a letter to: California Department of Justice, Public Inquiry Unit, P.O. Box 944255, Sacramento, CA 94244-2550.

Pennsylvania Navient lawsuit

Attorney-General Josh Shapiro has filed the state’s Navient lawsuit. The state had a huge win recently in court when the judge dismissed an application from Navient to strike out the case on the basis that the state had no standing to bring the action when the federal CFSB was bringing its own student loans lawsuit.

Shapiro said the ruling cleared the path for obtaining justice of hundreds of thousands of student loan borrowers.

“The ruling is a total win on two grounds,” Attorney General Josh Shapiro said in an interview.

“It rejects all those claims that a state AG or actor has no right to bring suit. Two, it allows our case to go forward against a massive wrongdoing to the tune of billions of dollars taken out of the pockets of students by Navient.”

A total of 1.76 million Pennsylvanians collectively owed $70.9 billion in private and federal student loans as of December 2019. The average student loan debt for a new college graduate in Pennsylvania was $37,061 in 2018 – second highest among all states.

Student borrowers who believe they have been subject to these or other unfair or deceptive practices are encouraged to file a complaint with the Office of Attorney General at www.attorneygeneral.gov. They can also call 800-441-2555 or email scams@attorneygeneral.gov.

Illinois Navient lawsuit

The Illinois lawsuit against Navient was brought by Attorney-General Lisa Madigan, who is pushing for relief in the form of loan forgiveness for those affected.

She has also put out a press release on the issue and set up a support line:

Students who have questions or are looking for restitution for their student loans can call Attorney General Madigan’s Student Loan Helpline and speak to someone directly about receiving help: 1 (800) 455-2456.

Washington Navient lawsuit

Attorney-General Bob Ferguson filed the suit against Navient and has encouraged borrowers to to file a complaint with the Attorney General’s Office.