Attorney General John Formella Announces Settlement with Student Loan Servicer Navient | News Releases

Harmony, NH – Legal professional Common John M. Formella publicizes that the Legal professional Common’s Workplace has reached an settlement with Navient Company and Navient Options, LLC (“Navient”), a pupil mortgage servicer, to supply $3,590,988.96 in debt cancellation for 129 New Hampshire pupil mortgage debtors.

“This motion gives necessary aid to New Hampshire pupil mortgage debtors who have been victims of Navient’s unlawful and dangerous practices,” stated Legal professional Common Formella. “Our Shopper Safety and Antitrust Bureau works diligently to guard New Hampshire shoppers and at the moment’s settlement represents one other necessary step in these efforts. I thank our Shopper Safety group for his or her efforts on this case.”

The consent judgment being filed in Merrimack County Superior Court docket resolves a number of allegations that Navient violated the New Hampshire Shopper Safety Act, together with allegations that Navient:

• Originated subprime pupil loans in New Hampshire that Navient anticipated, and which finally did default at excessive charges
• Made billing and cost techniques tough for debtors and cosigners to regulate the appliance and allocation of their funds
• Positioned some debtors who have been experiencing long-term monetary misery or hardship into forbearances or providing forbearances to such debtors with out adequately exploring whether or not another compensation plan, reminiscent of an income-driven compensation plan (“IDR”), could be extra acceptable for his or her circumstances
• Failed to supply IDR renewal notifications that adequately suggested debtors of the subject material and urgency of the notifications

The consent judgment additionally comprises injunctive phrases that replicate the intent of the Legal professional Common’s Workplace and Navient to enhance customer support for New Hampshire pupil mortgage debtors.

Below the phrases of the consent judgment, pending remaining approval by the courtroom, Navient will:

• Proceed to elucidate the advantages of income-driven compensation plans and supply to estimate income-driven cost quantities earlier than inserting debtors into elective forbearances.
• Keep customer support practices that help borrower success, reminiscent of processing funds shortly and precisely, making cost histories out there to debtors, directing further funds to loans with the best rates of interest, and enabling debtors to supply standing directions in allocating further funds.
• Practice specialists who will advise distressed debtors regarding different compensation choices and counsel public service employees regarding Public Service Mortgage Forgiveness (PSLF) and associated packages together with notifying debtors in regards to the U.S. Division of Schooling’s not too long ago announcedPSLF restricted waiver alternative, which quickly gives thousands and thousands of qualifying public service employees the prospect to have beforehand non-qualifying compensation durations counted towards mortgage forgiveness, underneath sure circumstances.

The loans that can be canceled have been non-public schooling loans originated largely between 2002 and 2010 and later defaulted and charged off. Debtors who qualify for this non-public mortgage debt cancellation will obtain a discover from Navient within the subsequent few months. Debtors don’t must take any motion themselves to obtain this profit.