Navient will further train its customer service representatives to concentrate for key words related to public service loan forgiveness so as that they will connect borrowers with the overall public Service Loan Forgiveness program.
Navient also will monitor customer service calls to form sure its representatives are providing accurate information to borrowers who have an interest publicly service loan forgiveness.
Navient will create standardized templates for borrowers who request information about public service loan forgiveness.
Neither Navient nor the American Federation of Teachers have commented publicly on the settlement. the overall public Service Loan Forgiveness Program could also be a federal program that forgives federal student loans for borrowers, including teachers, who are employed full-time (more than 30 hours per week) in an eligible federal, state or local public service job or 501(c)(3) non-profit job who make 120 eligible on-time payments.
The rest of this post gives detailed information about Navient lawsuits, what they mean for college kids such as you who took out massive loans and what we will expect from the longer term . There are many belongings you might got to know before filing a claim against the corporate to urge Navient loan forgiveness.
It is 2019 and Navient lawsuits brought against them by the Attorney Generals of Illinois, and therefore the CFPB remains present for mistreating the scholar loan processing services. It means you’ll apply to the BDAR, ONCE the lawsuits are acknowledged and therefore the Department of Education starts to simply accept Borrower’s Defense to Repayment Program applications against the corporate .
The Illinois lawsuit accuses Navient of misleading student loan collection practices. Navient gave the borrowers false information about their options so they cannot get out of the default. There is the Federal Student Loan Rehabilitation Program which was made to help students who fell behind on payments to help them get back on track and carry on repaying their loans without additional interests. There are certain cases where a student cannot repay her loan. The reason might be injury, unemployment or other financial difficulties. Navient always tried to make sure that students never get out of the default by giving them deceptive information. The Federal Student Loan Rehabilitation Program was already very confusing, and Navient took advantage of it and made it harder for its borrowers.
What I am about to tell you might sound a bit crazy but in case the Navient lawsuits are accepted, and you successfully get your loans discharged or forgiven you will have one last problem to solve which is the tax. When you receive loan forgiveness, the IRS considers it a taxable income. For example, if you owed 20,000 US dollars to Navient which is now forgiven, you might owe IRS about 4 to 6 thousand dollars. The worst thing is that the IRS will demand the whole amount right away without giving you a chance of paying it monthly. But that should not make you devastated because there is and will be a lot of borrowers like you who will owe money to the IRS and it can also be resolved just like Navient loan forgiveness depending on the situation.