Student loan debt is an issue that affects the majority of college students in America today. According to the Consumer Financial Protection Bureau (CFPB), complaints that they have received regarding student loans increased 325% over the past year. What could be causing this? University prices have been a hot button issue in recent years. Students cannot afford to pay for college without taking on large student loans.
Issues with sketchy loan providers such as Navient, and employment sponsored repayment plans that have gone bust, have created much difficulty for students trying to pay off their debt. Below are some issues the CFPB have cited against Navient. Navient is the largest student loan provider in the U.S., and is currently facing a lawsuit from the CFPB right now for the reasons listed below.
Examples of Sketchy Student Loan Practices
- Blocking borrowers from lower payments: Navient allegedly disallowed qualified lenders from making lower payments, thus charging late fees and interest on borrowers who could not make payments that were too high.
- Wrongful payment processing: Charging late fees for not timefully processing payments on their end.
- Misinformation: Providing bad information regarding when payments needed to be made and how much the payment should be. Navient has also allegedly deceived borrowers to change co-signer information on their loans.
- Bad employment sponsored repayment plans: Many borrowers who have started working at a job that promised to help repay their student debt over a period of years have received approval of debt repayment certificates, only to receive another notice letting them know their debt is still unpaid.
If you are struggling with repaying your debt, there are always still options for you. One of the options could be a complaint filed with the CFPB, but if your debt is too high, filing for bankruptcy on your student loans could be your best option.
What Kind of Bankruptcy Should You Choose?
There a number of repayment options including Chapter 7 bankruptcy and Chapter 13 bankruptcy. A bankruptcy attorney will be most able to help you decide what the best option is for your case. If undue hardship can be proven in court, your student debt may be dismissed in some cases.
Washington DC bankruptcy attorney Kevin D. Judd offers free consultations to review your student loan debt and see whether filing for bankruptcy or other relief options can work for you.