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A group of investors accusing the student loan company Navient of misleading them about an alleged conspiracy to push borrowers into pricey forbearance plans has convinced a federal judge to certify their Class.
The Class includes investors who purchased Navient stock between Jan. 18, 2017 through Nov. 20, 2018. U.S. District Judge Robert B. Kugler agreed to the unopposed motion for certification this week, noting that hundreds of millions of shares were traded during that time.
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.
Navient faces a number of other legal issues surrounding claims it misled student loan borrowers, including another class action lawsuit filed by student loan holders who say the company withheld information about federal loan forgiveness programs. In addition, Navient reportedly faces a potential $4 billion judgment in a lawsuit filed by the Consumer Financial Protection Bureau (CFBP) over the same allegations. Several State Attorneys General have also filed lawsuits saying Navient failed to properly inform borrowers about their options.
These lawsuits accuse Navient of looking out for its bottom line at the expense of student loan borrowers. The company allegedly took the easy route, pushing borrowers to put a pricey pause on their loans, rather than taking the time to explain other, less expensive repayment options. In addition to forcing borrowers to pay more than under other federal repayment programs, the company allegedly based executive bonuses and other incentives on the number of borrowers put in forbearance.
The Navient investors class action lawsuit claims that the company made false and misleading statements in response to legal action by the CFPB and Attorneys General in 2017, allegedly artificially inflating its stock price as a result.
The investors contend that despite growing evidence that Navient engaged in predatory lending practices, company officers continued to categorically deny the allegations. When the alleged scheme was revealed in an AP News exclusive report on Nov. 20, 2018, Navient stock took a drive, dropping 11 percent when the article was released, claims the class action lawsuit.
Were you misled by Navient’s alleged scheme to steer borrowers into forbearance? Tell us about your experience in the comment section below!
The lead plaintiffs and Class Members are represented by Adam M. Apton of Levi & Korsinsky LLP.
The Navient Investors Class Action Lawsuit is Eli Pope v. Navient Corp. et al., Case No. 1:17-cv-08373, in the U.S. District Court for the District of New Jersey.
Read About More Class Action Lawsuits & Class Action Settlements:
- Navient Class Action Alleges Borrowers Misled About Loan Forgiveness
- Nelnet Class Action Says Income-Based Repayment Plans Cancelled
- Do You Qualify: Wrong Number Robocalls | Business, Creditor & Debt Collector Lawsuit Investigation
- Do You Qualify: Florida College Fees Refund | COVID Class Action Lawsuit Investigation
148 thoughts onNavient Student Loan Fraud Class Action Lawsuit Gets Certified
I, too have struggled with paying Navient with these high interest rates.
They lied to me for years about deferment and not telling me about income base repayment. Please add me.
Navient added $10K to my loan as a “fee” for forbearance they never explained an income-based repayment and raised my interest rate to 8.25%. It’s shameful how they took advantage of so many students
I as a low income single mother was not told about income base repayment and I was convinced to use forbearance for many months when I couldn’t pay. I did end up finding out about income based repayment later on and did it for about 3 years. I had to file paperwork each year to show my income. I submitted my information and a month later received a notice that I had defaulted on my student loan payment (my income based repayment amount had been $0 the year before and my income had not changed) and I would have to pay money and enter a program to get me back on track. There were thousands of dollars added to my loan amount! I had not defaulted, I sent in my paperwork as I had for the past several years! I had spoken to a lawyer in Massachusetts about this 5 years ago and she was supposed to get back to me but I never heard from her again. I now owe $77,000.00 for an associates degree.
navient let a relative consolidate my loans over 20 years ago without my knowledge or consent and i’ve never been able to do anything about this. I want justice and still have this burden on my shoulders almost 25 years later
Please add me problems since 2012
Please add me problems since 2012
Please add me, so many comments reflect what I have been going through. They always steered me to for ranch loans, help
Forebearance loans
Please add me. Been trying to pay off a 11,500 loan for over 10 years.
Yes the Naviance student loan they have been harassing me so much since 2010. Even in putting my student loans in forbearance they have been in forbearance I don’t know how long I was supposed to be under the William Ford program which if after 10 years I still wasn’t working they would have paid off the student loan that was a rip off too and they’re still ripping people off and about 3 months ago I got a letter saying that maybe it had sold my thing to my loan to another company and I will start getting emails and letters and junk from them I am so tired of all the phone calls and everything it when they call me they want my personal information I’ve had my identity stolen a couple of times I have told him about that yes I want to be in on this and I need my student loans gotten rid of. The amount of my loan was ridiculous. I never worked under any of my degrees everything was such a ripoff yrt not a dime ever passed through my had.