Student Loan Corporation Navient Being Sued by Feds

Discussion in 'The Mainboard' started by miles, Jan 19, 2017.

  1. GoodForAnother

    GoodForAnother they don’t allow you to have bees in here
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    sleeper pick for most evil company in America
     
  2. Lyrtch

    Lyrtch My second favorite meat is hamburger
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    student loans may be one of the biggest drags on social mobility in america atm

    making kids make what is basically a mortgage payment(or more) as soon as they get out of school vs 20years ago is insane. also causing home ownership rates to dip.
     
  3. RoyalShocker

    RoyalShocker But I don't wanna be a Nazi
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    Luckily it's offset by homes being ridiculously expensive, so milennials can't afford to pay loans and buy homes!

    You guys did a great job, baby boomers
     
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  4. JohnnyChimpo

    JohnnyChimpo This man, Lenny Pepperidge, AKA Lenny the Pep...
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    One thing regardless of political affiliation anyone under the age of 40 can universally rally behind....

    Fuck that generation as a whole
     
  5. Moxin24

    Moxin24 Show me that smile
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    Yep
     
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  6. Bruce Wayne

    Bruce Wayne Billionaire Playboy
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    The entirety of my wife's paychecks go toward making a monthly payment to Navient, and will continue to do so until she's roughly 40
     
  7. mma1

    mma1 Well-Known Member
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    How long should a lender wait for you to begin to pay back the money you borrowed?
     
  8. colonel_forbin

    colonel_forbin Well-Known Member
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    So if the CFPB wins, what happens to the $4 billion?
     
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  9. NP13

    NP13 MC OG
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    I would love to have the 35K+ that I've paid so far. Got about 18K left. And I know that's way less than most.
     
  10. DUCKMOUTH

    DUCKMOUTH People don’t you know, don’t you know
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    Going into debt to get/work a job you probably hate is insane.

    Unless my kids have some specialized field they want to go in, I'm not sure college is the best decision.
     
  11. Jax Teller

    Jax Teller Well-Known Member
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    Hey that's the servicer on my loans. Hate them.
     
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  12. Redav

    Redav My favorite meat is hot dog
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    Jesus Christ
     
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  13. beist

    beist Hyperbolist
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    Hi is this the line for people who owe them money and want to know where we can find a form to join a class action suit?
     
  14. Seavie

    Seavie Loading tweet...
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    What would the suit be for?
     
  15. tjsblue

    tjsblue I was right at the time
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    Dude, sell some Wayne Enterprises stock and pay that down.
     
  16. tjsblue

    tjsblue I was right at the time
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    So what should they do? Serious question. The kid/family chose to go to college and pay what they did. They signed up for the loans.
     
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  17. allothersnsused

    allothersnsused Wow that’s crazy
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    I could rant about this forever.

    1. College is seen as the ultimate tool to social mobility.
    2. Baby boomer generation believes it to be mandatory for their kids (and, at the time, may not have been wrong).
    3. Federal government wants to make sure college is available to all
    4. Federal government begins issuing loans with ridiculous interest, to account for the fact that there's no underwriting done on the loans and thus the risk is much greater.
    5. Federal student loans are also not discharged in bankruptcy, which is a protection against the risk for the government, but eliminates a fail-safe that helps people in debt over their heads to get out.

    at the same time:

    1. College is seen as the ultimate tool to social mobility
    2. New colleges begin to crop up. Public is uneducated about what constitutes "good" college vs. "bad" college.
    3. Colleges are flooded with applications, begin to compete with each other.
    4. Colleges have unlimited source of capital, because every single person in America can "afford" to go to them. Not only that, they feel like they HAVE to go.
    5. Colleges, feeling competitive pressure from other colleges, begin spending on attractive items wholly unrelated to education (dining halls, climbing walls, outdoor student pools) in order to keep students coming.
    6. College tuition rises exponentially, yet no one blinks an eye because the money to pay for it is freely available.
    [​IMG][​IMG]

    TL;DR the federal government, in trying to make college accessible to everyone, accidentally put many Millenials in a gigantic hole by providing surplus capital to universities at the expense of impressionable 18 year olds.
     
    #18 allothersnsused, Jan 19, 2017
    Last edited: Jan 19, 2017
  18. beist

    beist Hyperbolist
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    I would guess it would have something to do with this:

    “At every stage of repayment, Navient chose to shortcut and deceive consumers to save on operating costs. Too many borrowers paid more for their loans because Navient illegally cheated them and today's action seeks to hold them accountable.”
     
  19. Futureman

    Futureman I’m gonna defer to Marcus on this one
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    I will be done paying those bastards in 3 years and will at that time be old enough to run for president
     
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  20. CoastalOrange

    CoastalOrange Well-Known Member
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    That is who services my loans and I can definitely attest to them giving shitty advice over the phone. About a year ago I called up and tried to get on one of the income-based repayment plans. I spoke with around 6 different people on 6 different occasions.

    The first one said that my options were limited to 2 particular plans (both being much higher than the others offered).

    I called back a week later, not happy with the previous conversation, only to be told by someone that all I needed to do was fill out this particular form online, send it in, I would be approved and then I would be on the more reasonable repayment plan. Did this and was turned down.

    Needless to say, I was confused so I called again. Same response. Oh, it was just a mistake on their part and they will get it fixed. A week or so later, get another denial letter.

    Call back a 4th time. Yea, you just need to resubmit the form again with some extra info and then we will have this sorted for you. Was denied again.

    Called a 5th time to speak with someone who said something along the lines of, "I don't know what those other people were talking about, you are not eligible for the repayment plan you are seeking."

    Finally, call back a 6th time and defer my loans for a year because I couldn't afford the payments they were expecting.

    Earlier this year I call back seeking the same repayment plan and it is magically granted.

    CLIFFS: Fuck Navient. Called 6 times and received BS help/advice.
     
    #21 CoastalOrange, Jan 19, 2017
    Last edited: Jan 20, 2017
  21. Seavie

    Seavie Loading tweet...
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    Interested in this as well. Surely there's more to it.
     
  22. Seavie

    Seavie Loading tweet...
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    Like, they increased the principal? Or changed the terms of the loan without notifying the borrower?
     
  23. beist

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    Pro-tip for everyone itt who has loans with Navient. Look into www.upromise.com. Its one of those sites where you click through their links for online shopping and and get cash back , but in this one your cash back get applied directly to your loans with Navient. It also is part of the restaurant rewards network so you get cash back for eating at certain restaurants in you area. It works, but more often than not I have to provide receipts, deal with customer service people in india, etc to push through what is supposed to be automatic reimbursement. Which, that is actually pretty fitting given the tone of this thread.
     
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  24. beist

    beist Hyperbolist
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    I'll let my attorneys handle the rest of your questions.
     
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  25. Seavie

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    :idk:
     
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  26. 41262

    41262 Well-Known Member

    We do a terrible job as a society and in education teaching people about this stuff and I think that is where the problem is. I am a teacher and actually teach about this subject. It's amazing what people don't know or consider about taking loans and all we really tell people is you need to go to the best school you can. We don't teach them how to factor in costs. We don't tell them how much where they go to school actually impacts (or doesn't impact) their career earnings.
     
  27. allothersnsused

    allothersnsused Wow that’s crazy
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    Federal student loans are a different beast than a private loan, which isn't immediately obvious if you've never had them. Federal loans aren't typically "$X at Y%" but are usually a combination of several different amounts and percentages, all of which have different rights and options.

    There are also various income based repayment plans or deferral options that may or may not be available to you based on your situation that aren't available via private loan. Ideally, a loan servicer would help walk you through these options. I'm guessing what Navient did is hide the ball in regards to the repayment or deferment options legally available to you based on federal law in order to force you to pay your loan back in a way that best suited them.
     
  28. beist

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    The pendulum is going to swing the other way and the bottom third or so of would-be college students are going to realize it is a complete waste of time and money for someone in their position. The Central Michigan-type universities are going to just go away, not to mention the for profit universities. If I was smart enough to know how to invest money in this happening, I would.
     
  29. Bruce Wayne

    Bruce Wayne Billionaire Playboy
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  30. Jax Teller

    Jax Teller Well-Known Member
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    I think it's that Navient would not disclose the full range of repayment options available. I can attest like CoastalOrange that almost every time I talked to them i was given different info and it took an act of congress to actually get on a reasonable repayment plan.

    Maybe they don't make as much money off some of the plans or maybe they did a shitty job training their employees on the range of options that were allowed? I don't know.
     
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  31. Seavie

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    I'm in the mortgage industry so I know about all the different repayment options. Mainly I'm just curious if people are complaining about them being misleading. Because on the surface it just seems that people are upset that they have to pay back what they borrowed. If they are misleading people then that's another story.
     
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  32. allothersnsused

    allothersnsused Wow that’s crazy
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    I don't know if public universities will fold, I think we just see them return to more reasonable tuition with far less CapEx and student amenities. I also think we see far fewer universities try to bill themselves as research universities, and more of them become teaching-focused. Maybe that's idealistic, as academics can be a stubborn and insecure bunch.

    I'd worry more about the high-priced private universities at the lower end of the spectrum. I always think of this tiny school near where I grew up called Ferrum College. Average SAT score is sub-1000 (or 1500 I guess, now) and cost of attendance is north of $40 grand a year. I'm sure there are plenty of small, private schools around the country like this where spending nearly 200 grand on an education is just a terrible investment.
     
  33. allothersnsused

    allothersnsused Wow that’s crazy
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    Don't think the CFPB brings suit if people are just mad about paying back their student loans so I think its the former. But I'm with you on the personal accountability thing. I'm really at a loss of what to do about it because I agree that if you signed up for a loan you should have to pay it back, but at the same time its become a huge economic drag.

    I really think the people who already have loans are screwed but there need to be policy changes to prevent it from continuing to happen. Problem is there's no momentum for it because providing (a) education opportunities and (b) non-tax federal funding are such popular policy positions. It really will take some sort of bubble bursting.
     
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  34. 941Gator

    941Gator TMB's resident beach bum
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    Life hack: don't pay it

    Welcome.
     
  35. Jax Teller

    Jax Teller Well-Known Member
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    Yea I'm not mad at repaying. I'm mad that they hid options that were available to me and would have helped me greatly to be on.

    I think they do an absolutely horrible job educating young people on the impact these loans will have on your future. When I got mine it was basically "sign here and here. This is the most you get. Don't worry about repaying that's years down the road".
     
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  36. Chicago Seminole

    Chicago Seminole Well-Known Member

    Write off all the interest and US government buys back principal.

    Have everyone pay back principal, also change the bankruptcy laws back so student debt can be eliminated that way.

    Get rid of for profit school model, have state schools eliminate the administrative fluff, and have a serious discussion about higher education.

    But moral hazard rabble rabble.
     
  37. Chicago Seminole

    Chicago Seminole Well-Known Member

    Navient is staffed solely by homosexuals.
     
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  38. prerecordedlive

    prerecordedlive Matthew Gertz is my real Congressman
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    Soon-to-be wife has paid about 30k of her 75k loans in about 14 months (she's 26). We're hoping to have that shit behind us in the next 2 years.

    Watching that 6.2% part of it pile up interest is fucking infuriating. She had 12 loans (10 left) that ranged anywhere from 2.4% to 6.2%. It annoys the fuck out of me that her family talked her into taking out loans to travel abroad as a freshman. And a bunch of her friends did the same. Most of them haven't even begun paying so they'll just continue to owe more and more.

    Fuck whoever made education so god damn expensive.
     
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  39. Nelson

    Nelson Can somebody please get Ja Rule on the phone
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    This is honestly the best summation of what happened I've ever seen. Well done
     
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  40. tjsblue

    tjsblue I was right at the time
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    I don't think that math works Kramer. Do you know what a write off is?
     
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  41. Lyrtch

    Lyrtch My second favorite meat is hamburger
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    this is only partially related to Navient being sued as they did far worse than just taking advantage of a predatory industry

    allowing a profit motive and the dangling ball of allowing more broad access to student loans let colleges increase tuition at absurd rates(or for profit degree mills popping up to take in all those student loans) despite an educated population being both an intrinsic benefit to society and continuing to be the best correlate to social mobility and increasing earning potential

    returning college to something where only the rich go will hurt the US as a whole including economically on a global scale

    basically every other country that is comparable to the US provides free or extremely low cost tuition higher education to its population as they see all these benefits.

    I'm in no way saying those who took out loans shouldn't have to pay, but its not really an option of take out loans or don't go to school. You have to go to college to get almost any job in this climate. There's only so many skilled labor jobs that people love to point to for not going, which those people would also benefit from college.

    This doesn't even touch on that the economy would benefit from the average citizen having the avg student loan debt of 30k in their pockets putting it into the economy vs lining bankers pockets for doing nothing.
     
  42. allothersnsused

    allothersnsused Wow that’s crazy
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    If I didn't have to worry about money anymore I think I'd like to teach personal finance to high school students. It's complex and, unless your parents take the time, no one is ever going to sit you down and explain it to you. And if they do, they're almost invariably trying to sell you something.
     
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  43. jaygabriel

    jaygabriel What the fuck Salami?!?!
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    Don't know why but this reminds me of the scene in The Rainmaker where the former account manager talks about how they're taught how to purposefully frustrate and deny people until they give up on filing their claim.
     
  44. Redav

    Redav My favorite meat is hot dog
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    Having an extremely costly barrier to higher education is the root of the problem. But that may be an answer to a different question.
     
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  45. Goose

    Goose Hi
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  46. laxjoe

    laxjoe Well-Known Member
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    nope. but they're the ones writing it off!
     
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  47. EMAW FC

    EMAW FC Proud Smucker
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  48. tjsblue

    tjsblue I was right at the time
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    12% those fucking animals.
     
  49. College is one of the biggest scams in America. For decades people have been basically telling kids that college is the only path toward's upward mobility and to avoid having a career serving fries at McDonald's, yet at the vast majority of colleges, if you enter as with poor or middle class status, by the time you are 34, chances are pretty high you will still be of poor or middle class status. Many kids who end up going to college would be much better financially served going into a trade, where they will likely get a higher paying job than if they had gone to college, instead of going into college when they have no business doing so or getting one of numerous of the completely worthless degrees that colleges peddle to get that almighty dollar.