If you have a student loan, there is a good chance that it may be serviced by Navient. Navient, which spun off from Sallie Mae and is the nation’s largest student loan servicer, has more than 12 million customers and services more than $300 billion of government and private student loans. Additionally, you have probably heard of what most experts are calling the “Student Loan Bailout.” Much like the mortgage bailout several years ago, millions of borrowers are having payments reduced and some even receiving refunds or forgiveness.
In January, President Trump announced that he was going to continue the program former President Obama began 4 years ago which is to forgive $7.7 billion in federal student loans held by an estimated 387,000 Americans. During this same month, a lawsuit filed against Navient in a Pennsylvania federal court in January, the Consumer Financial Protection Bureau (CFPB) alleged that, among other allegations, Navient “systematically and illegally [failed] borrowers at every stage of repayment,” including:
- created obstacles to repayment by providing bad information;
- processed payments incorrectly;
- failed to act when borrowers complained;
- illegally cheated many struggling borrowers out of their rights to lower payments, which caused them to overpay for their student loans;
- deceived private student loan borrowers about requirements to release their co-signer from the loan; and
- harmed the credit of disabled borrowers, including severely injured veterans
The CFPB also alleged that Navient improperly directed borrowers into forbearance when these borrowers otherwise might have qualified for income-driven repayment plans, and did not adequately keep borrowers in income-driven plans informed of deadlines to maintain their eligibility under such plans.
Borrowers are rushing to enroll in these forgiveness or consolidation programs before they change or possibly repealed under the new administration. Due to high demand the Student Relief Center has established a helpline at 1 (888) 510-2832 and provides a free eligibility check Mon- Fri.
Why is Student Loan Forgiveness Happening?
The amount of money owed by individuals continues to grow due to high compounding interest rates. This is making it even harder for many to overcome student loan debt. As a result, many Americans are finding themselves under a huge burden and cannot pay for some essentials including rent, their mortgage, car payments and even monthly food bills. The effects of overbearing student loans are also affecting the national economy and adding to the growing financial crisis in America.
The Trump Administration hopes Student Loan Forgiveness options will put more money in our pockets and stimulate the economy. Like the policy or not it may help millions of Americans get back on track. The problem is that these programs could change at any time so it’s important to take action now.
A Common Struggle
Jeremy, a Web Designer, explains his personal struggle with student loans. He received his associates degree for Web Design from Bryant and Stratton College in 2004. Borrowing $45,000 in federal and private loans, Cooper says he hasn’t been able to get a job in Web design because, “Everything that I had learned from my degree became obsolete even before I graduated because the technology moves so fast.” Since graduation, Cooper has fallen behind on his loan payments, and his debt has nearly doubled to $88,000. Despite working full-time day and part-time night jobs and scaling back his expenses to the bare minimum, Cooper says he does not see a way out of default.
How do you Get Help if you Have Student Loans?
If you find yourself burdened by the repayment of student loans, you are not alone. You are just one of the 44 million Americans who owed financial institutions more than $1.4 trillion at the end of 2016. That’s about $620 billion more than the total U.S. credit card debt. In fact, the average Class of 2016 graduate has $37,172 in student loan debt, up six percent from last year.
Despite this, there are several new programs aimed at reducing payments, forgiving, discharging or even cancelling student loans owed by millions of struggling Americans. Not everyone qualifies for these programs, but there are several options available for any type of situation. To know whether you are eligible for student loan forgiveness, consolidation or lower monthly repayments, call the Student Relief Helpline at 1 (888) 510-2832.
What is Student Loan Forgiveness?
“Loan forgiveness is the cancellation of all or some portion of your federal student loan balance. Yes, that’s right—cancellation of your loan balance. If your loan is forgiven, you are no longer required to repay that loan.”
Student Loan Borrowers may contact EducationCam to get information on available programs in your area.
EducationCam’s Student Relief Hotline
Phone: 1 (888) 510-2832
Monday – Friday | 9am to 7pm EST
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This website / blog is not affiliated with the Department of Education, Navient, Sallie Mae or any other student loan servicer.