If you have been a student in the United States, then you may already know that Navient is actually a big company that has been handling student loans right here in the country, and that too for years now. Before, though, they actually used to be part of Sallie Mae, which many of you may already be familiar with. Coming back to Navient, though, you see, over the years, we have seen that a lot of borrowers started complaining about how badly this company was treating them. What are the complaints all about? Well, most of the borrowers are saying that Navient actually made it much harder for them to pay off their loans, and when it was supposed to help them, it didn’t give them many fair options. This is precisely what has resulted in this Navient Student Loan Debt Lawsuit. So, let’s get to the details here.
The 2025 Lawsuit You Should Know About
After so many problems with the loan payments or the way Navient was making things hard, one student from Illinois who goes by the name Amanda Luciano said that enough is enough, now’s the time to take some legal action against it. That’s when, specifically in February 2025, we saw this Navient Student Loan Debt Lawsuit come into play, and it was actually filed in the Cook County court.
One of the main talking points of this lawsuit has something to do with the “School Misconduct Discharge Application.” What is it exactly? Oh, well, it was supposed to help out borrowers, mainly the students who have taken the loans, where it could have had their private student loans cancelled. But only in the case where their school had done something wrong, that was the only catch. So what then? Well, Amanda actually filled this application, but Navient straight up denied her application. To be honest, she was one of the best candidates to apply for this “School Misconduct Discharge Application” thingy because her school really had a bad reputation. Still, she got that “denied” mark on her application. But the thing is, Navient actually didn’t give any logical explanation behind why that is the case.
The $120 Million Settlement You Shouldn’t Miss
When all of this was going on, there was a big thing that you should be aware of, and yes, we’re talking about the penalty Navient got from the Consumer Financial Protection Bureau (also called CFPB). And back then, a settlement was made, and you know the amount? Oh, that was a mind-boggling $120 million in settlement.
As for why this penalty was enforced, you see, CFPB went on to accuse Navient of some serious problems. Like what? They said that Navient was doing some shady practices, especially by steering away borrowers into choosing expensive payment plans. A similar situation unfolded in the Nationstar Mortgage Settlement Lawsuit, where homeowners faced wrongful foreclosures and billing errors that ultimately led to a multi-million-dollar settlement. Not just that, though, they even messed up many people’s billing information, too and ended up giving them wrong information.
So yes, if you’ve taken out a loan and you feel involved in whatever wrongdoings that Navient was up to, then sure enough, you can join this lawsuit, as many people are already stepping forward.
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Read related cases in our Corporate & Financial Lawsuits section.
