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Navient Loan Forgiveness Class Action Settlement

Please see what other class-action suit settlements you would possibly qualify to say cash from in our Open Settlements directory!

Navient loan borrowers were allegedly duped out of loan forgiveness.

Individuals with a Navient loan could also be ready to enjoy a $2.4 million settlement resolving claims that the lender misled consumers about loan forgiveness.

The settlement benefits individuals who had Federal Family Education loans or Direct Loans serviced by Navient, were eligible for public service loan forgiveness thanks to current or former full time employment, and spoke to a Navient customer service representative about Navient loan forgiveness since Oct. 1, 2007. This settlement Class is estimated to incorporate 324,900 people.

Plaintiffs filed their Navient loan forgiveness class-action suit lawsuit in October 2018. consistent with the plaintiffs, the federal loan servicer misled borrowers about public service loan forgiveness – causing consumers to overpay on their student loans.

The plaintiffs argue that Navient knew that certain borrowers were eligible for public service loan forgiveness supported their employment. However, despite this data , Navient allegedly did not give information to borrowers about how they might maximize this chance . As a result, Class Members reportedly paid higher payments on their student loans which could are forgiven.

“Navient has not been living up to its obligation to assist vulnerable borrowers get on the simplest possible repayment plan and qualify for PSLF,” the Navient loan forgiveness class-action suit lawsuit contends.

The lawsuit brought by the CFPB does cover both Private and Federal student loans so that the lawsuits will help everybody regardless of the type of loans. The essential accusation from the Consumer Financial Protection Bureau’s lawsuit is establishing barriers to repayment by giving students misleading information, incorrectly processing the payments and failing to react when the students disagreed.

The Illinois lawsuit accuses Navient of misleading student loan collection practices. Navient gave the borrowers false information about their options so they cannot get out of the default. There is the Federal Student Loan Rehabilitation Program which was made to help students who fell behind on payments to help them get back on track and carry on repaying their loans without additional interests. There are certain cases where a student cannot repay her loan. The reason might be injury, unemployment or other financial difficulties. Navient always tried to make sure that students never get out of the default by giving them deceptive information. The Federal Student Loan Rehabilitation Program was already very confusing, and Navient took advantage of it and made it harder for its borrowers.

Taxation
What I am about to tell you might sound a bit crazy but in case the Navient lawsuits are accepted, and you successfully get your loans discharged or forgiven you will have one last problem to solve which is the tax. When you receive loan forgiveness, the IRS considers it a taxable income. For example, if you owed 20,000 US dollars to Navient which is now forgiven, you might owe IRS about 4 to 6 thousand dollars. The worst thing is that the IRS will demand the whole amount right away without giving you a chance of paying it monthly. But that should not make you devastated because there is and will be a lot of borrowers like you who will owe money to the IRS and it can also be resolved just like Navient loan forgiveness depending on the situation.

https://studentloansresolved.com/2019/03/18/2019-guide-navient-loan-forgiveness/

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