The Consumer Financial Protection Bureau is accusing the Department of Education of getting in the way of its lawsuit against a student loan giant. Last year, the Consumer Financial Protection Bureau filed a lawsuit against student loan giant, Navient. That lawsuit alleged the student loan company caused borrowers to struggle unnecessarily by steering them towards repayment plans that weren’t in their best interests and ignoring borrowers’ instructions about how their payments should be allocated. Last week, in a letter submitted to the judge overseeing the case, the CFPB claims that Navient isn’t producing documents requested as part of the case that are “essential to identifying the universe of harmed consumers,” because they don’t have permission from the Department of Education.
California Attorney General Xavier Becerra filed a lawsuit accusing student loan processor Navient Corp. of harming consumers by failing to properly service the debts. Navient, one of the nation’s largest student loan servicers, services about $300 billion in federal and private student loans for 12 million borrowers, about 1.5 million of whom live in California.
Nothing can be more frustrating to a person who needs to make a payment on their student loans than their inability to work with the student loan servicers. (FedLoan, Navient, Great Lakes, NelNet) More often than not, the servicers want far more per month than they can afford. That is when seeking the advice of D.J. Rausa, San Diego Student Loan Lawyer, becomes so necessary.
When a client wishes to pay their student loans, I help them arrive at a monthly payment they can afford. Often times I assist them in getting into the best available repayment plan, such as an Income Driven Repayment Plan, IDR.
Recent news from the U.S. Departments of Education (DOE) is long overdue — it has partnered with the Department of Veterans Affairs to make it easier for disabled veterans to have their federal student loans discharged.
Often-embattled Education Secretary Betsy DeVos is on the right side of this issue, noting that simplifying the loan forgiveness process is a “small but critical way” to show gratitude to those who have become disabled fighting for their county.
First Come, First Served
If you thought you were out of luck to qualify for the Public Service Loan Forgiveness (PSLF) program because you were enrolled in graduated or extended repayment plans — Congress recently did you a favor.
Forbes.com reports that as part of the new federal spending bill, $350 million has been authorized to the Department of Education to offer forgiveness to all student loan borrowers who have a loan from the Direct program, have made all payments in full and on time, and have worked 10 years in a public service job for a qualifying employer.