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Are You Being Sued By Navient?

Consumer Protection Lawyer

If you or a loved one needs help settling private Navient student loans or dealing with a Navient lawsuit, then talk with a consumer protection lawyer. Law Office of Simon Goldenberg has a lot of experience dealing with Navient on behalf of borrowers. We'll help explain your legal options and how our firm can represent you to resolve your student loan issues. We're here for you. To learn more, get in touch with Law Office of Simon Goldenberg for a free consultation by calling (888) 301-0584 or contacting us online.

As of 2021, according to Forbes, 5.1 million borrowers are in default on their student loans, amounting to approximately $112 billion in delinquent student loan debt. Moreover, according to Forbes, most Navient student loan borrowers who were required to pay on their loans during the pandemic are “underwater.” Additionally, according to the article, 63 percent of borrowers owe more than what they originally borrowed. If Navient is suing you, you may be thinking:

  • What exactly is Navient?
  • What rights does Navient have to collect my student loans?
  • What will happen if I fight Navient’s debt collection lawsuit?

What Is Navient?

Navient, previously known as Sallie Mae, is the primary originator of Federal student loans. However, today Navient works as a loan servicing company for both Federal and private student loans. You can learn more about Navient here.

What Rights Does Navient Have To Collect My Student Loans?

Navient has every legal right any lender has to collect the debt if done properly. As of 2019, according to Student Debt Relief, Navient has been sued by several large entities and States for mishandling student loans and student borrowers. Claims include that:

  • Navient mishandled payments by misapplying them to student loans.
  • Navient suggested options against the borrower’s best interest, resulting in higher student loan debt.
  • Navient made the payment process more difficult for borrowers, resulting in unintentional missed payments and fees.

Therefore, if Navient is suing you, it is important that you hire an experienced and knowledgeable attorney who has dealt with student loan lawsuits in the past. At Law Office of Simon Goldenberg PLLC, you can ensure that your case will be handled correctly and with your best interest at heart.

What Will Happen If I Fight Navient’s Debt Collection Lawsuit?

First and foremost, for Navient to make a claim against you, they have to prove that they are legally capable of collecting the payment, that you owe the amount they are suing you for, and that you are, in fact, in default of your loan, allowing for litigation. If they can prove those things, most student loan debt collectors plan on borrowers to do nothing when they are sued, resulting in an inexpensive default judgment against the borrower. However, if the borrower does hire an attorney and respond to the complaint, there are a number of things that may occur before the case is seen before the court.

  1. The plaintiff may dismiss the case for financial reasons. Ninety percent of all collection lawsuits, including student loan collections, end in a default judgment, meaning the other side did not respond to the complaint. Therefore, if you respond to the complaint, the plaintiff may decide that the attorney costs of going to court are too great compared to the likelihood of collecting the debt and what amount they are likely to collect.
  2. An experienced attorney may be able to negotiate a settlement with the plaintiff. You can see here that the attorneys of Law Office of Simon Goldenberg PLLC have experience negotiating settlements with student loan servicers. In an effort to not expend as much money on legal services, the plaintiff may offer to settle; this does not mean you have to take the first settlement offer provided. The attorneys at Law Office of Simon Goldenberg PLLC will be able to help you evaluate the settlement offer and whether it should be accepted, countered, or outright rejected.
  3. The court may dismiss the case because the statute of limitations has run, and there is no longer a viable lawsuit.
  4. The court may reduce the judgment award or dismiss the case due to other defenses once the case has been presented to the court. Some defenses include:
    1. Mishandling of payments
    2. Improper accounts stated
    3. Mistaken Identity

Statute Of Limitations

The statute of limitations varies from state to state. In New York, the statute of limitation for debt collection lawsuits was six years. However, on April 7, 2022, the statute of limitations on most debt in New York, including student loans, was reduced from six years to three years. This means that if a collections lawsuit does not begin within three years of the date of default, the business may not bring a lawsuit to collect the debt. The date of default is generally 30 days after you made your last payment, or how otherwise defined in the loan agreement.

Hiring A Consumer Claims Attorney

If Navient is suing you for the collection of student loan debt, it is essential you hire an experienced and knowledgeable attorney to represent your rights tenaciously. The attorneys at Law Office of Simon Goldenberg PLLC are experienced in debt-collection lawsuits. They can successfully help you understand the details of the case, your rights, and the best ways to defend your rights, including negotiating with Navient to settle and supporting you in court against Navient.

Therefore, if you have a student loan in default with Navient and are being sued, call Law Office of Simon Goldenberg at (888) 301-0584 or contact us online for a free, confidential consultation.