I’m not sure where that will get you, seeing as that their former student loan ombudsman quit because the CFPB under the Trump administration “abandoned the very consumers it [was] tasked by Congress with protecting.”
#3 Suing Navient for Violating Consumer Financial Protection Laws
Could you sue Sallie Mae or Navient for violating consumer protection laws by charging you that ungodly amount of interest?
I mean you could, but would you win your lawsuit? Likely not. After all, you agreed to the loan terms.
My pessimism aside, each state has its own broad consumer financial protection laws that may give the ability to sue. You’d want to speak with an attorney where you live to find out your rights.
#4 Will Navient Waive Interest and Collection Fees
Since we know filing a complaint or trying to sue likely won’t work, what are your options?
You could keep paying. But with the loan repayment plans they offer you, it feels like you’re throwing good money after bad. And isn’t that what you’ve already done over the years?
Could you ask them to wipe away the interest and collection fees and let you pay what you borrowed?
Technically, there’s nothing stopping you from asking. Nor is there any legal reason why they couldn’t do so.
But will they agree to do that?
Probably not. In fact, the representative will likely rudely dismiss you and tell you there’s nothing that can be done and you need to pay what you owe.
So what then?
#5 Can I Refinance Navient Student Loans
If you can get it, student loan refinancing may be the right choice. It may give you better loan repayment options and maybe even offer loan forgiveness if you become totally and permanently disabled.
But here’s the thing:
Few people who have trouble paying their private student loans qualify to refinance their loans.
Typically, I see borrowers fail to qualify for refinancing because:
they’ve previously defaulted on the loan
they have other negative marks on their credit report
their credit score is low or
they don’t work in the right industry (some loans require you be a physician, engineer, lawyer, etc.).
In my opinion, no one servicer/refinance company is demonstrably better than the other.
You simply want to find a company that offers you a great interest rate and flexible student loan payments.
#6 Can I File Bankruptcy on Navient Private Loans
I’ve had debtors in bankruptcy file a lawsuit to discharge their student loans.
While we don’t always get a discharge, we’ve been able to negotiate a private student loan debt settlement whereby we wiped away thousands of dollars of interest.
If you’ve already filed bankruptcy, you may be able to reopen your old case to file the lawsuit. You’d want to speak with a bankruptcy attorney near you to review your options.
#7 Should I Strategically Default on My Private Loans
But maybe you don’t want to file bankruptcy.
After all, it’s scary as fuck and it’s complicated. Plus, you don’t want to lose your home, car, etc.
So what are your options then?
You could stop paying.
Some refer to this is as strategically defaulting.
But then the natural question to have is what happens when you stop payment?
#8 Will Navient Sue You if You Default on a Private Student Loan?
Likely yes. You see, suing you is the only way Navient (or any private student loan lender) can forcefully collect on defaulted loans from you.
Unlike the federal government, which has the power to garnish your wages and take your tax refund automatically, private lenders need a court order to forcefully collect from you.
But how long will it take Navient to sue you?
There’s no one answer. A lot depends on when you made your last payment, what the applicable statute of limitations is, etc.
Since there’s no one answer, let’s assume it takes at least a few years after you stop paying the debt before they sue you.
#9 What Happens After You Stop Loan Payments
Collection calls. And lots of them.
Navient’s going to be calling you, your momma, your best friend, your job, your ex., etc.
On top of that, they’ll send threatening letters and send negative information to each credit bureau, which will likely cause a serious drop in your credit score.
Of course, those are all bad, stressful things that trigger all types of anxiety and depressive and fearful moods.
But there’s also some good that happens:
A Navient student loan settlement becomes a possibility.