The Largest Student Loan Company In The Country Has Screwed People Out Of $4 Billion. OUTRAGE: ENGAGE!

Posted: January 19, 2017 in Uncategorized

how-rude-stephanie-full-house

(LA Times) – The Consumer Financial Protection Bureau sued the nation’s largest servicer of student loans Wednesday, alleging that Navient Corp. cheated borrowers, resulting in higher payments for Americans struggling to pay back their student loans. The federal consumer agency said that Navient, formerly part of Sallie Mae, “failed to provide the most basic functions of adequate student loan servicing at every stage of repayment for both private and federal loans.” The Wilmington, Del., company, the agency said, provided student borrowers with inaccurate information, ignored complaints, processed payments incorrectly and steered borrowers toward higher-cost repayment options.  

“For years, Navient failed consumers who counted on the company to help give them a fair chance to pay back their student loans,” CFPB Director Richard Cordray said in a statement. “At every stage of repayment, Navient chose to shortcut and deceive consumers to save on operating costs. Too many borrowers paid more for their loans because Navient illegally cheated them, and today’s action seeks to hold them accountable.” The lawsuit, filed in U.S. District Court in Pennsylvania, says Navient violated the Dodd-Frank reform act, the Fair Credit Reporting Act and the Fair Debt Collections Practices Act. The agency is seeking redress for borrowers harmed by the practices and to prevent any future harm.

In all, the servicer slapped borrowers with additional interest charges of up to $4 billion by enrolling them in repeated forbearance plans from January 2010 to March 2015, according to the consumer agency. 

No! This can’t be true. I refuse to accept it. I simply will not believe that a company who gives away thousands of dollars to 18 year olds with no job, credit history, or legitimate means to pay them back could possibly do something this heinous. Purposely misleading these innocent 20-somethings with shady fine print details and steering them toward payment plans with higher interest rates? All in the middle of their quarter-life crisis? This is worse than finding out Santa isn’t real. It’s on par with realizing the WWE is scripted! I had placed such loyal trust in Sallie Mae, Freddie Mac, Tommy Noble, Johnny Two-Times, and Stevie Janowski. Those were my peoples, man. And to know that they’ve been taking my hard-earned money from me every month and then wetting their beaks on the side? Needless to say, this cuts deep into my heart, soul, and pockets.

Sure, this is pretty fucked up. Trying to drive recent college grads who are making bottom of the barrel salaries toward monthly payment plans that have higher interest rates is “unethical,” in a sense. I’m definitely glad there’s a federal lawsuit and sort of a watchdog effort to keep these loan companies in check. But when it boils down to it, I can’t muster up the energy to get outraged over this one. What am I supposed to do? Stomp my feet and curse out a bunch of billionaires who correctly assumed that most 22-30 year olds are too lazy to take a deep look into their agreements and argue with customer service agents over the phone who are guiding them toward a more revenue-friendly plan? No, I actually have to give them some props. Basically, they were fucking us all in the ass and daring us to question why.

 

 

Look, all I’m saying is that nowadays, going to college is kinda like smoking cigarettes. Are there benefits? Sure, you’ll get a degree which will “help you get a job” and you’ll have plenty of booze and sex filled nights that you can reminisce about for the rest of your life. Just like how cool you’ll look smoking a butt outside the bar. But the risks are well documented. You know what you’re getting into. The joy ride is fun while it lasts, but it’s going to cost you in the long run.

They’re selling you on a luxery, not a necessity. So don’t go buying volcano insurance when you live in the heart of Rhode Island…

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