Navient Must Face Student Loans Borrowers in Class Action Lawsuit, Judge Rules

Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.

A group of former students who took out loans serviced by student loan servicer Navient has been given the green light to proceed with its class action lawsuit against the student loans servicer, which alleges sneaky business practices and self-dealing.

U.S. District Judge Susan D. Wigenton ruled in New Jersey federal court that the Navient class action lawsuit brought by the nine borrowers could proceed to discovery, but dismissed one claim of breach of fiduciary duty, Law360 reports.

The borrowers, who are now attorneys, doctors, and other professionals with advanced degrees, have filed fraud claims and claims under New Jersey, Delaware, Florida, and New York consumer and business laws.

According to their class action lawsuit, Navient’s monthly bills fluctuate arbitrarily. The borrowers allege that the company conceals repayment terms, includes billing statements that don’t reveal the actual sums included in the bill, and is “calculated, non-responsive and misleading” when answering questions about loans.

The borrowers also allege that the company has “labyrinth-like” websites with inaccurate information.

In December 2020, Navient attempted to have the class action lawsuit tossed out, and in its most recent dismissal brief, it said that “plaintiffs must allege that the conduct underlying the claims somehow is unlawful, which they have not done, and cannot do,” Law360 reports.

However, the borrowers responded that Navient was being “crafty,” adding that “Navient cannot credibly claim that the extremely detailed complaint does not allege actionable claims for, among other things, fraud and consumer fraud.”

In March, Navient was hit with a separate class action lawsuit filed by investors who alleged that the company misled them about an alleged conspiracy to push borrowers into pricey forbearance plans.

Navient hiked its stock price with deceptive information about how it treated borrowers — allegedly putting them in more expensive forbearance programs, rather than cost-effective income-based repayment plans. Then, according to the class action lawsuit, the company lied about it. 

Have you ever had your money managed by Navient? Tell us what your experience with the company was like in the comments section!

Navient is represented by Rebecca G. Zisek and Lisa M. Simonetti of Greenberg Traurig LLP.

The borrowers are represented by Xavier M. Bailliard, James Van Splinter and Joseph Tripodi of Kranjac Tripodi & Partners LLP.

The Navient Student Loan Fraud Class Action Lawsuit is Manetta et al. v. Navient Corp. et al., Case No. 2:20-cv-07712, in the U.S. District Court for the District of New Jersey.

Read About More Class Action Lawsuits & Class Action Settlements:

• What is the Impact of Filing Bankruptcy on Student Loans from Private Lenders?
• Lawyers for College Athletes Demand $3.5M in Fees from NCAA Following High Court Win
• TitleMax Hides 132% Interest Rate When Loaning to People in Financial Hardship, Class Action Alleges
• Do You Qualify: University of Phoenix Job Placement Investigation