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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.
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1,056 thoughts onNavient Must Face Student Loans Borrowers in Class Action Lawsuit, Judge Rules
Please included me,
Please include me! They services my loan for about 5 years and I owed more than I borrowed at the end of the 5 years. And, their loan servicers were extremely rude.
Include me
i have navient loans that were consoldated while in default was pressured how do i find out if i can get help
Please add me. Navient phone consults provided me no solutions other than forbearance when I called for assistance. I have email proof of forbearance thru 2018.
Please add me to the lawsuit, they handled some of my loans.
Please include me in the class action suite against Naviet. I have been making payment since 2000 on a $3500.00 loan and the loan should have been paid off by now!!!!!
Navient constantly harasses me at least three times a day. And I truly believe that my loans are not correct they have me owing triple for the loans. Please add me to the lawsuit.
8.5 % and forbearance after forbearance and my loan is double what I went to school for even though I paid $580 a month for years
Similar case as a Kristy May happened to me. It looks like they don’t want you to paid off those student loans and looks like they want you in debt for the rest of your life. Thank you for stepping up and do something about. They are scammers and this need to be stopped immediately. I am signing for the Lawsuit against Navient. I’ve been paid this loan for 20 years and still owns more than the original loan. This is ridiculous. You will never paid those loans off. I’m ready to hired a lawyer because this doesn’t looks like right. Thanks again. These loans over 15-20 years old should be automatically paid off. Erase them will be the ideal. Will be fear. I couldn’t sign for another loan because this one, because you will never paid off these students loan with Navient. This Is a forever loan. Sad. Very sad.
When I took student loans with sallie mae, they were “under the federal department of education “ but Navient is not. I never gave permission for this change. But now, I am not elegible for forgiveness. I’ve paid for 30 years.
All of a sudden they marked my payment as late On my credit report, but I’m in forbearance. Please add me to the list.