Sallie Mae, Navient, Nelnet and other Student Loan Servicers May Soon Be Exempt From Prohibitions Against Debt Collector Harassment
Our firm has found Navient and Sallie Mae to be particularly aggressive in their attempts to collect student loan debt. The Telephone Consumer Protection Act prohibits robocalls/robotexts and other automated dialings without prior express consent. Innumerable allegations have been made by consumers against both Sallie Mae and Navient alleging that these student loan servicers continue making robocalls and autodialings without consent or after consent has been revoked. It also appears that Sallie Mae and Navient may attempt to collect debt from students or family member guarantors when the loan is in a forbearance period.
Ballooning student loan debt has been a growing issue for consumers for the past decade. With outstanding student loan debt reaching approximating $1.2 trillion, student loan servicing is huge business, with Sallie Mae, Navient, Nelnet, and other student loan servicers being some of the largest beneficiaries.
Prior to 2010, student loans were issued by commercial banks directly to students with the federal government only guaranteeing certain loans or providing other, more limited, direct aid. Now, the vast majority of student loans are owned entirely by the federal government. The U.S. Treasury Department recently released its annual financial report that identifies student loans as making up 37% percent of the total assets of the United States government!
A recent proposal in Congress exempts collection agencies or debt collectors from TCPA prohibitions against robocalls when collecting federal debt, including student loan debt. This is terrific news for companies like Sallie Mae, Navient, and Nelnet, but is unfortunate for consumers harassed with unwanted robocalls and text messaging from these student loan servicing debt collection companies.
The TCPA prohibits abuse telephone practices by lenders and marketers and places strict limitations on the use of automated calls to call or send text messages to cell phones. Unfortunately, changes in the law may grant debt collectors the right to harass consumers simply because the debt relates to the federal government. However, if these parties have contacted you inappropriately in the past or are doing so now, the new law would not apply to these actions.
If you are being harassed by Sallie Mae, Navient, Nelnet, or any other debt collector, contact the consumer protection attorneys of Maginnis Law, PLLC. Our attorneys are experienced at holding debt collectors accountable for their unlawful actions. You can contact us at 919.960.1545, 919.526.0450 or through our confidential contact page. You can also subscribe to our mailing list to learn about the rights you have under consumer protection law against large corporations.