Navient’s Latest Student Loan Scam

California Attorney General files a lawsuit against Navient and subsidiaries, Pioneer and General Revenue Corp., alleging violation of California’s unfair competition and false advertising laws Misrepresenting the order in which the company would apply extra loan payments and failing to properly discharge federal student debt for borrowers with a total and permanent disability. According to articles in the Washington Post and the Los Angeles Times – at issue is a practice to mislead student loan borrowers about the important difference between forbearance and income based repayment programs.  Navient encouraged borrowers to postpone payments through forbearance, knowing that interest continued to add up, which would result in a dramatic increase in the overall debt.  When there was a most cost effective option – enrolling the borrower in an income-driven repayment plan that would avoid unnecessary fees and costs. Navient…

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