Consolidating private student loans advice
Check your credit report to see all of your debts, including both federal and private student loans.When it comes to student loan servicing, “consumers cannot easily take their business elsewhere,” Richard Cordray, director of the Consumer Financial Protection Bureau, said in a statement in January, when the agency filed the lawsuit.
Pennsylvania’s attorney general was the latest to file a suit, which came in early October. Among other things, the CFPB alleges that since at least January 2010, Navient misallocated payments, steered struggling borrowers toward multiple forbearances instead of income-driven repayment plans, and provided unclear information about how to re-enroll in income-driven repayment plans and how to qualify for a co-signer release.UBS Investment Bank was the lead financial adviser to Sallie Mae and its transaction committee, which was also advised by Sandler O’Neill Partners L. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward –- and free. " Navient Corp., the nation’s largest student loan servicer, is facing four lawsuits alleging that it harmed student loan borrowers throughout the repayment process. Consumer Financial Protection Bureau and the Illinois and Washington attorneys general sued Navient in January.For instance, you’re eligible for income-driven repayment plans and potentially federal loan forgiveness programs if you have federal loans.You can look up your federal loans on the Federal Student Aid website.Also, there’s no guarantee you’ll be better off with a different servicer.
“The other servicers aren’t exactly rainbows and sunshine,” Minsky says.
The transaction, which requires the approval of regulators and Sallie Mae’s stockholders, is scheduled to close in late 2007.
Sallie Mae will not pay any dividends before completing the deal. Bank of America and JPMorgan have committed to provide debt financing for the transaction and to provide additional liquidity to Sallie Mae before the deal closes. JPMorgan and Banc of America advised the investor group.
The lawsuits could potentially take years to play out “because of the sheer amount of evidence” that the CFPB, Illinois and Washington have gathered during their investigations, Martindale says.
Regardless of the outcomes, borrowers should regularly check their student loan accounts to make sure their loans are being serviced correctly, says Betsy Mayotte, director of consumer outreach and compliance at American Student Assistance, a nonprofit that helps students pay for college. Your student loan servicer is the company you make payments to each month. Department of Education has been the direct lender for all federal student loans, but it contracts with private, third-party companies, including Navient, to handle loan servicing.
The shares were up $8.49, or 18.2 percent, at $55.25 in early New York Stock Exchange trade. Last week, Sallie Mae settled with New York Attorney General Andrew Cuomo for $2 million.