Navient and AFT members, nationwide class agree to settle loan forgiveness suit
Loan servicing company Navient Solutions LLC has agreed to enhance its call center practices as part of a multipronged settlement preliminarily approved by a federal judge, in a putative nationwide class action brought by members of the American Federation of Teachers.
On June 19, Judge Denise L. Cote of the United States District Court for the Southern District of New York gave preliminary approval to the terms of the settlement. Under the settlement, Navient agrees to enhance its internal practices and policies, including training customer service agents to take additional steps to identify borrowers potentially eligible for relief under the Public Service Loan Forgiveness program and provide them with information about the program and how to qualify.
AFT members brought the suit in October 2018, challenging Navient’s practices with respect to advising federal student loan borrowers about the Public Service Loan Forgiveness program, a federal government relief program that forgives the remaining balance on certain public service workers’ federal student loans after 10 years of making qualifying payments. The proposed class consisted of teachers, nurses, first responders, school support staff, higher education faculty and social workers who have dedicated their lives to helping others.
AFT President Randi Weingarten hailed the settlement as great news for borrowers hoping to access PSLF:
“This exceptional agreement is a big step forward that will help millions of borrowers get the relief they need — and were promised by the federal government — by enhancing the resources available to them through their loan servicer. Developed by Navient with input from our members, these enhanced practices will assist public service workers on their journey to realize the federal government’s bipartisan promise of public service loan forgiveness.
“The agreement is a good illustration of how borrowers and servicers can work together for the benefit of both parties. It acknowledges that PSLF is a vital program for many graduates who forgo larger salaries in the corporate sector to serve the public instead. The student debt crisis has impacted an entire generation and put the promise of higher education further and further out of reach. This settlement is an important part of combating that crisis.”
Under the settlement, Navient will hold a stakeholder meeting with the 10 plaintiffs to hear firsthand about their challenges with PSLF and will use that feedback in implementing the agreed-upon practice enhancements.
The agreement requires Navient to train its customer service representatives on these new practices, which they will use when CONTINUE READING: Navient and AFT members, nationwide class agree to settle loan forgiveness suit - The Highland County Press
