Navient is under fire for more student loan issues—this time related to their overall business strategy.
One of the state attorney generals suing Navient said “[t]hese loans were designed to fail . . .”
According to new details from the state lawsuits, Navient allegedly used subprime loans as part of an overall business strategy. Subprime loans, notably, are part of what fueled the mortgage crisis in recent years.
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Student loan defaults increased significantly between 2015 and 2016.
According to data from the Department of Education, student loan defaults increased at least 17% between 2015 and 2016. And in terms of real consumers, with real loans, that represents an additional 600,000 borrowers that defaulted on their student loans.
Student loan collector GC Services settled a lawsuit that alleged it engaged in unfair and unlawful debt collection.
The lawsuit alleges that GC Services repeatedly contacted third parties about someone else’s debt and even continued to call after promising to stop calling. In addition, the lawsuit alleges that GC Services left improper voicemails for consumers that resulted in a consumer’s debt being revealed to other people.
GC Services and the Federal Trade Commission have agreed that GC Services will pay a $700,00 civil penalty as part of a resolution of the lawsuit. This is the second time this year that a major student loan collector has been in the news for debt collection of student loans.
[Read more…] about GC Services Sued for Improper Student Loan Collections
Navient and Pioneer Credit have been sued for their handling of student loans.
The complaint alleges that “Navient has failed to perform its core duties in the servicing of student loans, violating Federal consumer financial laws as well as the trust that borrowers placed in the company.”
[Read more…] about Navient and Pioneer Credit Sued For Student Loan Issues
The only thing worse than being buried in your own student loan debt is being buried by someone else’s student loan debt. Unfortunately, it is a common scenario.
Whether you are considering co-signing for a child, a family member, or someone else, think twice before agreeing to pay someone else’s debt.
If the primary borrower does not pay, you may find yourself contacted by debt collectors, or part of a debt collection lawsuit.
Debt collection of student loans is on the rise, as the number of student loans in default continues to rise.
The good news is that debt collectors collecting on student loans are governed by the FDCPA, which protects consumers against abusive and unfair collection practices. The bad news is that collection of student loans is a booming business.
If you are being contacted by a debt collector about your student loans, here are some things you need to know.