Private Student Lenders Finally Do the Bare Minimum, Halt New Lawsuits Against Borrowers During the Pandemic
Action by Navient and National Collegiate to Temporarily Halt Lawsuits Follows AFR and SBPC’s Letter Criticizing Industry Debt Collection Tactics
Statement from Alexis Goldstein, Senior Policy Analyst, Americans for Financial Reform:
According to the Washington Post, Navient will suspend any new lawsuits against private student loan borrowers, and National Collegiate has said no new lawsuits will be filed for at least two months. This is the bare minimum of what should happen in the midst of a pandemic, but it is step in the right direction which we welcome and urge all other private student loan servicers to take as well.
This news follows AFR joining the Student Borrower Protection Center (SBPC) to send letters to one dozen large private student lenders, urging them to take steps to mitigate borrower harm caused by the economic fallout of the coronavirus. Private student loan servicers and debt collectors must go farther than Navient and National Collegiate did today to ensure real relief for borrowers. They must end any existing lawsuits against borrowers, allow borrowers to cease payments without fees or penalties, stop involuntary collections, end judgement execution activity or collecting on judgements, and expand opportunities for loan modifications.