In new lawsuit, borrowers accuse Navient of standing in the way of student-debt forgiveness

Potentially millions of teachers, social workers and other public servants wasted money repaying loans because a major student-loan company obstructed access to debt forgiveness to which they were entitled, a new lawsuit charges.

The class-action suit filed Wednesday against Navient by borrowers who are eligible for Public Service Loan Forgiveness, claims that the company provided these public servants with wrong information, extending the amount of time they would need to wait before having their loans discharged under the program and causing them to spend money unnecessarily on their debt.

The borrowers also allege that Navient’s company policies incentivized this behavior.

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