The American Federation of Teachers says Navient failed to guide borrowers through a loan forgiveness program.
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Nearly 30,000 people have applied to have their student loans forgiven under a government program that rewards those who work in public service for at least 10 years while keeping their payments for their loans up to date. Only 96 actually had their loans forgiven.
“In the aftermath of the financial crisis, we learned repeatedly about dubious practices among mortgage servicing companies that made it harder for homeowners trying to repay or renegotiate their loans. Now, similar horror stories are emerging about the companies servicing student loans.”
Traditionally, in bankruptcy court, any loan with the word “student” associated with it has not been dismissed. New York lawyer, Austin Smith, has a different take on the law.
A recent report found that students that graduate with debt in Maryland continue to see the amount of debt they carry after graduation rise.
More than 50 percent of Oregon college grads are in debt, and Oregon is ranked 22nd in the country for its amount of average student loan debt per borrower.
State Attorney General Xavier Becerra accused one of the nation’s largest student loan servicers of cheating perhaps thousands of California borrowers, and on Friday sued the company and its subsidiaries.
The amount of money owed on student loans recently reached $1.5 trillion in the United States, with more than 44 million borrowers still paying off – with interest – the escalating costs of a college education.
Student loans can be hard to navigate, but Friday Governor Northam signed House Bill 1138 into law which will make it easier for students to understand the repayment process.
These are just a taste of the complaints submitted by New Jersey student loan borrowers to the federal government and made public by the federal Consumer Financial Protection Bureau.