Debtors could get relief from illegal collection of student loans if student loan company Navient loses a class action lawsuit.

Borrowers allege Navient tried to collect on loans that had been discharged through bankruptcy. They claim company representatives not only pestered borrowers, but also called their employers and relatives.

Mounting pressure from both plaintiffs and lawmakers finally convinced Navient to temporarily stop its most aggressive collection moves. Borrowers will most likely continue to receive mailed statements, but phone calls to borrowers and their circles of family and employers will stop through the end of the suit’s court proceedings.

Navient also is facing a lawsuit filed by the Consumer Financial Protection Bureau in January, and attorneys general in Illinois and Washington claim that Navient’s lending practices are predatory.

Generally, a debt is not likely to be eligible for bankruptcy discharge if it is a federal student loan, a school-offered student loan, or a certain type of qualified education loan from a private lender.

Definition of Illegal Collection of Student Loans Could Expand

Courts have generally required student debtors to meet the undue hardship standard to get discharge of student loan debt. New focus is placed on the student loan categories that could become eligible for discharge under a bankruptcy.

Even though borrowers have declared bankruptcy, Navient allegedly has participated in the illegal collection of student loans that are used for non-accredited programs, kindergarten through 12^th year education, and overseas medical schools. These loans are not in categories spelled out as ineligible for bankruptcy protection–which effectively makes them eligible for bankruptcy protection, according to the borrowers’ attorneys.

The court’s decision would affect nearly 16,000 Navient borrowers.

Tuition Answer Loans Discharged in Bankruptcy

Currently, Sallie Mae “Tuition Answer” loans may be dischargeable by a bankruptcy. Some borrowers have been victims of attempted illegal collection of student loans that have already been legally discharged in bankruptcy proceedings.

If you have a Tuition Answer student loan discharged in bankruptcy, but Sallie Mae or its representatives attempt to collect on these same loans after the bankruptcy, those collection attempts could be in violation of federal bankruptcy laws.

Sallie Mae Tuition Answer loans are considered non-qualified student loans, which means they can be eligible to be discharged through a bankruptcy. These loans include funds above the “cost of attendance” to help students have money to live on while they go to school.

Tuition Answer student loans are private student loans that are not made or guaranteed by the Department of Education. This means that Tuition Answer student loans don’t have the flexible repayment terms or borrower protections that federal student loans provide. Variable interest rates can impact your ability to make payments as rates increase.

If other student loans are given the same consideration, thousands of students can be free of student loan debt by declaring bankruptcy.

The Fair Debt Collection Practices Act (FDCPA) prevents lenders and debt collectors from trying to collect on debts that have been discharged in a bankruptcy. If you have been a victim of illegal collection of student loans, you could benefit by speaking with an attorney regarding your legal options.

DISCLAIMER: Debt collection itself is not illegal. However, creditors and debt collection firms collecting on consumer debts must adhere to the FDCPA and respect bankruptcy discharge injunctions. Even though consumer debt attorneys are investigating these companies, their debt collection practices may be legal.