Does consolidating my student loans hurt my credit
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But some companies that aren’t affiliated with the Department of Education capitalize on subpar student loan servicing practices by charging fees to enroll borrowers in free federal student loan programs.
The lawsuits could potentially take years to play out “because of the sheer amount of evidence” that the CFPB, Illinois and Washington have gathered during their investigations, Martindale says.
The Illinois, Washington and Pennsylvania suits make similar claims to the CFPB’s allegations and also allege that Navient, when it was part of Sallie Mae, made subprime loans to students, particularly those attending for-profit schools.
Navient broke off from Sallie Mae Bank, one of the largest private student loan lenders, in 2014.
And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward –- and free. " Navient Corp., the nation’s largest student loan servicer, is facing four lawsuits alleging that it harmed student loan borrowers throughout the repayment process. Consumer Financial Protection Bureau and the Illinois and Washington attorneys general sued Navient in January.
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Student loan servicers are supposed to help you understand the various repayment options.
By learning about the options yourself, you can be empowered to hold your loan servicer to that standard.
The allegations in Pennsylvania’s suit are “completely unfounded,” Navient said in an October 5 statement.
The company has also rejected the allegations in the other three cases, filing motions to dismiss them. District Court judge denied Navient’s motion to dismiss the CFPB’s case.
To guard against a mistake like that, which could severely hurt your credit score, check your credit report for errors.
You can get one free credit report every year from each of the three major credit bureaus.
Pennsylvania’s attorney general was the latest to file a suit, which came in early October. Among other things, the CFPB alleges that since at least January 2010, Navient misallocated payments, steered struggling borrowers toward multiple forbearances instead of income-driven repayment plans, and provided unclear information about how to re-enroll in income-driven repayment plans and how to qualify for a co-signer release.