Sallie Mae & Navient Accused of Cheating Student Loan Borrowers

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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.

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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 debt forgiveness
  • 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 harmed by 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.