In Pennsylvania Attorney General Josh Shapiro’s suit, the Third Circuit Court of Appeals rejected Navient’s argument that the suit should be dismissed. The Court found that a lot of of the suit’s claims regarding Navient’s alleged affirmative misrepresentations to student loan borrowers weren’t pre-empted by federal law. The ruling allows the suit to continue against Navient. “We hold that the plain language of the buyer Protection Act permits the Commonwealth’s concurrent action,” the Court wrote in its unanimous decision.
The Higher Education Act – which is that the complex set of laws that governs most of the scholar loan system – doesn’t provide for any private right of action that might allow individual student loan borrowers to travel after their loan servicer for violations, albeit the servicer violates the upper Education Act itself.
Many states, however, have state consumer protection laws that make it illegal for any quite consumer financial company to interact in unfair or deceptive business practices. These laws, in contrast to the upper Education Act, often do contain a personal right of action that permits individuals to file a lawsuit.
But when individual student loan borrowers sue their federal loan servicers under these state consumer protection laws, the servicers have argued that federal law supersedes state law. The argument essentially boils right down to this: since federal law provides no private right of action for violations of the upper Education Act, state law can’t provide a personal right of action, either. this idea is named “pre-emption” – the thought that federal law is superior to, pre-empts, state law.
The rest of this post gives detailed information about Navient lawsuits, what they mean for students like you who took out massive loans and what we can expect from the future. There are lots of things you might need to know before filing a claim against the company to get Navient loan forgiveness.
It is 2019 and Navient lawsuits brought against them by the Attorney Generals of Illinois, and the CFPB is still present for mistreating the student loan processing services. It means that you can apply to the BDAR, ONCE the lawsuits are acknowledged and the Education Department starts to accept Borrower’s Defense to Repayment Program applications against the company.
Even if you can’t file a claim against the company to get Navient loan forgiveness, you have other choices to get you back on track if you have not yet gone into default. There are lots of options available for you to reduce your monthly payments by adjusting repayment plans or exploiting forgiveness.
Navient lawsuits are a big deal proving that we are finally on the right path to solving the student loans crisis along with the Consumer Financial Protection Bureau, the Federal Government, and some States Attorney Generals. They are all standing up for ordinary people of the US and trying to fight the student loan servicing company who does not care about the students. They are pursuing this to make sure that all harmed students can get loan forgiveness. Navient lawsuits show that the tide of the ocean is turning against large companies who have been robbing ordinary citizens of America for years.
Therefore, decisive steps towards solving student loans crisis should be celebrated because this problem is finally getting the attention it deserves. All the current and prior students who have taken student loans from Navient, whether they finished the repayment program or not should keep following the news about Navient lawsuits because there is a chance that Navient loan forgiveness program will offer massive payouts in case the Navient lawsuits prove to be successful.