For the 44 million Americans struggling with student loan debt, most of whom are between the ages of 21 and 35, it may seem unfathomable that some companies would attempt to take advantage of the situation. However, in the case of student loan giant Navient, that may indeed be the case.
According to a 2017 report from the Department of Education’s Office of Federal Student Aid (FSA), Navient pushed many students to accept increasingly steep repayment plans with exaggerated interest rates. For some Navient borrowers, forbearance was described as their only option when they were unable to make payments – increasing the bottom line for the company.
Pushing Students to Forbearance
The FSA listened to more than 2,300 calls when preparing their report against Navient, examining the way Navient customer service agents would address debtors’ concerns about repayment. The result? Navient staffers offered forbearance as the only option in nearly 9% of cases, forcing many to accept higher interest rates and intense repayment plans, as the forbearance period continued to mount interest on top of their principal.
While Navient has denied the accusation that this was a strategic move on their part, the problem goes far beyond any one loan company. Student loan debt has now hit a record $1.5 trillion nationwide, and many millennials are barely able to make rent or pay for groceries in conjunction with their massive loan payments.
Get the Lower Loan Payments You Need
At the Buchalter Law Group, our Brevard County loan modification lawyers are committed to helping our clients manage their debt more effectively and find alternative solutions. Most people may not realize that some loans are negotiable, provided you can demonstrate hardship in paying for the loan month-to-month. If you need assistance with modifying the terms of your loans, or consolidating your debt, we can help you create a financial plan that will more effectively distribute your debt burden.
Contact us today for more information on how we can assist with loans in Brevard County and beyond!