Sallie Mae & Navient Accused of Cheating Student Loan Borrowers
Contact Us for a Free Consultation: (215) 278-4449
In 2015, student loan giant Sallie Mae reached a settlement agreement with
the federal government after it was accused of cheating student loan borrowers
in a number of ways. The settlement included $3.3 million in fines, $30
million in late fees to be refunded to borrowers, and another $96.6 million
in penalties and restitution for wrongfully processing student loan payments.
Golomb & Honik, P.C. is now investigating Sallie Mae and Navient (with
whom it merged in 2014) for charging excessive amounts of interest, leading
consumers into paying more than what they actually owe. If you believe
that you have been overcharged, please call our firm to schedule a free
consultation. Our attorneys accept cases nationwide.
Click here to fill out an
online consultation form.
Sallie Mae & Navient Preyed on Vulnerable Borrowers
Both Sallie Mae and Navient claim that they calculate interest based on
365.25 days a year. However, evidence suggests that these companies actually
miscalculated these rates in their favor, charging a much higher rate
of interest than was promised. As a result, borrowers, including those
struggling to make monthly payments, were saddled with monthly payments
exceeding what was legally owed in both interest and late fees.
Sallie Mae and Navient have been accused of a long list of deceptive and
wrongful practices, including:
- Attempting to hide illegal banking practices
- Charging 25 to 40 times the interest rate that Sallie Mae paid to originate
new private student loans
- Making 60 percent of their net income from only 23 percent of their portfolio
through interest alone
- Refusing to assist borrowers in financial trouble by offering them different
payment options, saving the companies millions in potential expenses and
making them even more money if the borrower files for bankruptcy
- Charging late fees of five percent for each missed payment, which is equivalent
to an APR of 120 percent
- Charging students “regular interest” on missed payments in
addition to the late fee, resulting in the borrower having to pay twice
for being late on a single payment
- Paying call center workers based on how quickly they could get borrowers
off the phone rather than encouraging their workers to help borrowers
find legitimate solutions
- Steering desperate borrowers into plans which temporarily deferred payments,
yet allowed loan balances to continue to grow
- Neglecting to tell severely disabled Americans that they are eligible for
- Failing to inform certain borrowers of their eligibility for debt forgiveness
if their school defrauded them or suddenly shut down
Nationwide Financial Abuse Attorneys in Philadelphia
You may be paying more money than you really owe to Sallie Mae and Navient.
Contact Golomb & Honik, P.C. to learn more about your rights. With
decades of combined experience and a formidable reputation in court, our
firm fights unyieldingly to protect the rights of those who have been
deceptive financial services. We’ll stop at nothing to help you obtain justice.
Call our firm today to talk about your potential case with a member of our team.