Loan Servicer Navient Allegedly Attempting to Steer Borrowers into Refinancing, Rendering Loans Ineligible for Forgiveness
Recent Navient Marketing Campaign Pushing Borrowers to Refinance Could Mislead Customers
Navient Corporation, one of the largest student loan servicers, is encouraging borrowers to refinance their student loans through a marketing campaign which could render their loans ineligible for the Biden Administration’s federally mandated student loan forgiveness. The company has been sending emails to borrowers urging them to refinance their current loan into a private loan named NaviRefi. Since NaviRefi is considered a private student loan, it would not be eligible for the debt relief that President Biden announced in 2022. Borrowers have enough hardship to deal with in recent years and this student loan forgiveness is destined to be a lifeline for them. This alleged, ill-timed push to maintain loan balances seems to be an effort by Navient to limit borrowers’ ability to take advantage of this program so that Naviant can continue to reap profits from interest from student loan borrowers.
Do you know if your Navient student loans are eligible for forgiveness?
Unsuspecting Borrowers Could be Allegedly Tricked into a Private Refinancing Plan, Making Their Student Loans Ineligible for Forgiveness
In 2022, President Biden announced a sweeping student loan forgiveness plan for all federal borrowers, regardless of servicer. Though the forgiveness plan was restricted to borrowers beneath a certain income, it provided much needed relief for millions across the country struggling to grapple with the worldwide pandemic, rising cost of living, cost of education, and skyrocketing interest rates.
Reports claim Navient, which services a quarter of all student loans in the country, has been sending promotional emails to encourage borrowers to refinance their loans into a private program offered by Navient called NaviRefi. For many unsuspecting borrowers this may seem like a way to save money, but in reality it could be an extremely costly decision which forecloses their right to loan forgiveness.
MLG Offers a Beacon of Hope for Borrowers
A letter written by Senator Elizabeth Warren and Representative Ayanna Pressley outline the tactic allegedly employed by Navient and question Navient Corporation’s intentions. These claims carry substantial implications for Navient. MLG is standing by to assist anyone who has borrowed from Navient or refinanced through NaviRefi. Student borrowers deal with loan repayments throughout their professional career and sometimes for life. MLG believes that no one should be tricked into a plan that could potentially cost them years of their life repaying a loan.
Did you refinance your student loans into a NaviRefi private loan because of Navient’s promotional emails? Contact us to learn if you’re eligible to join a class action lawsuit by filling out the form.
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Attorneys Handling this Case
Elaine S. Kusel joined the firm in 2008 and leads the firm’s New Jersey office. As a nationally-renowned class action attorney, she performs a significant role in the firm’s Consumer Fraud Class Action division.
After college, Ms. Kusel spent eight years working in the U.S. House of Representatives, where she eventually served as Legislative Director and Counsel to a Member of Congress serving on the House Commerce Committee.
After graduating from law school, her practice had included fraud litigation, mass torts, and international human rights law. In one notable case, Abdullahi v. Pfizer, Ms. Kusel represented Nigerian children enrolled in a clinical trial by Pfizer without their families’ informed consent. In another, Gutierrez v. Wells Fargo Bank, N.A., her work helped secure a $203 million-dollar class action verdict for unfair bank overdraft fees. Ms. Kusel helped to lead the effort to uncover the financial fraud of Volkswagen, leading to a $40 million-dollar settlement on behalf of the citizens of the State of Arizona in the emissions fraud scandal.