It is true that Navient is one of the biggest companies out there in the United States that handle millions of students’ loans, you know like, they make sure that payments are processed correctly and they also help out borrowers with repayment plans. And from a big company like this, you at least expect that they’re helping out borrowers with their repayment, you know, making things easier for them, right? But nah, Navient actually did the exact opposite, like, they on purpose made many borrowers opt for more expensive repayment options. How?
Well, they just gave them the wrong information and that didn’t just make things tricky and expensive for the borrowers, nah, it worsened their credit scores as well. This is precisely the reason why there is now a backlash against Navient and that is why we’re seeing this Navient Student Loan Debt Lawsuit in action.
Navient Got Caught, And Now They Owe $120 Million
Right after this lawsuit, we actually saw that Navient had to settle this case with the Consumer Financial Protection Bureau (CFPB). Okay, so? Well, the amount was $120 million, which is pretty mind-boggling if you think about it for a sec and that just gives you the scale of things, like how big of a thing this lawsuit was. Well, out of this total amount, $100 million will go directly to the customers who fell victim to Navient and their shady practices, And the rest of the $20 million? Oh, that’s just a penalty to the government.
Though, It Is Not Navient’s First Time Doing Something Like This
Well, before you think that it is all over like the case is settled, so no problem now. Yes, that’s true but you shouldn’t ignore the fact that it is not actually Navient’s first time doing something like this. Really? Yes, well, in fact, back in 2017, it was CFPB that sued them back then as well, and this time for failing borrowers at every stage of the repayment process, which was a big claim in itself. And once again, that turned out to be true, and that case was also settled. And then we saw Navient getting into another legal mess back in 2022, and this time, they were accused of making bad loans to students at for-profit colleges. So what happened next in that case? Well, once again, there was a settlement, but this time it was a HUGE $1.85 billion.
This 2022 lawsuit was so huge that they had to make an exit from the federal student loan service business for good this time.
Another Lawsuit? Yes, Because They’re Still at It
Like if all of this wasn’t enough already, we saw another lawsuit against Navient. When? That was this year in February 2025, and this time, it wasn’t some government agency suing them, nah, instead a group of student borrowers sued them. For what exactly? Well, the students say that the company wrongfully denied their applications to cancel their loans due to school misconduct, and that’s just purely unfair as well as illegal.