If you have taken out a loan with Navient, you are likely to have questions about the settlement. Navient is not obligated to settle the case, but you can still file a lawsuit against them if you are unhappy with the service. This article will help you determine the best way to proceed. Here, we’ll examine Requirements for relief, Restitution payments, and Class action lawsuits. Ultimately, you should be able to receive some relief from the settlement, which is why you need to understand the requirements of the class action settlement and Restitution payments.
Class action allegations should be dismissed by navient
In the U.S. district court, Navient has filed a motion to dismiss the class action allegation. In its motion, the company argues that the specific terms of individual loans are sufficient to state fraud and violations of consumer protection laws. The judge agreed. However, the company is still appealing the ruling. The next hearing is scheduled for December 2020. Navient has until then to file a response.
The settlement that Navient recently reached with 39 states and the District of Columbia is a big win for borrowers. Navient will forgive $1.7 billion of private student loan balances for almost 66,000 borrowers. The company will also distribute $260 restitution payments to 350,000 federal borrowers. If you qualify for the settlement, expect to receive a notice in July 2022. If you borrowed money through Navient, you can expect to receive a postcard in the spring of 2020.
Requirements for relief
If you’re considering filing a Navient lawsuit, you should know the requirements before proceeding. Navient has been accused of using unfair practices when servicing student loans. This case will result in $1.7 billion in relief for more than 66,000 borrowers. The lawsuit will cover the states of Illinois, Massachusetts, and California. However, you may qualify for some type of relief regardless of whether you filed a lawsuit or not.
If you have a private student loan from Sallie Mae Bank or certain other lenders, you may be eligible for relief. Likewise, if you attended a for-profit school that was subject to enforcement actions, you may qualify for relief. Examples of for-profit schools that qualify include DeVry University, Art Institute, and ITT Technical Institute. Then, you must have a mailing address in one of the 39 restitution-participating states.
Class action settlement
After a judge ruled against Navient in a case in December that could potentially result in a class action settlement, the loan servicer filed a motion to dismiss the lawsuit. The lawsuit is based on allegations that Navient misallocated student loan payments and caused potentially millions of consumers to become underwater on their loans. Navient has denied all the allegations and will continue to fight the bogus claims, despite the judge’s ruling.
The settlement announced on Tuesday will erase $1.7 billion of private student loans issued by Navient. The company will also pay $142.5 million to state attorneys general and distribute $95 million in restitution to nearly 350,000 federal student loan borrowers. The loan servicer’s harmful practices impacted students of all ages, including mid-career borrowers who dropped out of for-profit schools in the early 2000s. The company also agreed to alert credit bureaus to remove the loan tradeline.
Restitution payment
The Attorney General of Washington filed a Navient lawsuit in October 2017. The state’s attorney general’s office defeated Navient’s motion to dismiss and won important rulings. The U.S. Court of Appeals for the Third Circuit affirmed the lower court rulings and allowed the Navient lawsuit to proceed. The state will now submit a Consent Judgment, which must be approved by the court.
The settlement requires Navient to pay restitution to approximately 350,000 consumers. Of the 350,000 consumers, approximately 20,000 of them are in Ohio. As a result of the settlement, each Navient customer will receive a check for $260. In addition to this, people who qualify for private loan cancellation and reimbursement will receive a notice from the company by July. They will also receive reimbursement for any payments they made after June 30, 2021.
If you were to opt for the Navient settlement, you would be required to have missed at least seven consecutive monthly payments on your federal student loan. You would also need to have been located in one of the 39 restitution-participating states by June 30, 2021. Moreover, you would have had to enroll in the income-driven repayment program before the start of the forbearance period to qualify for this settlement.