Graduate Saddled with $138K Debt for ‘Worthless’ Degree Sues Loan Servicer Navient for Fraud
Aurora Woman’s Lawsuit Alleges Navient Denied Her Request to Have Loans Discharged Due to ‘Predatory For-Profit’ School
Aurora woman Amanda Luciano, 38, has filed a proposed class action lawsuit against Navient Corp. and its subsidiary, Navient Solutions, in Cook County Circuit Court. The lawsuit alleges that Navient fraudulently and unfairly denied her request to have her student loans discharged due to her attendance at a “predatory for-profit” school.
A ‘Worthless’ Degree and Overwhelming Debt
Luciano attended the now-defunct International Academy of Design and Technology (IADT) from 2006 to 2008, graduating with a bachelor’s degree in fashion merchandising. However, she claims that her degree was “worthless” and did not lead to the job opportunities touted in the school’s marketing materials. The classes were “not great” and were mostly led by adjunct teachers, and the promised career services didn’t materialize.
Private Loans with Variable Interest Rates
According to the lawsuit, an IADT financial counselor steered Luciano to take out private loans with variable interest rates, even though she was eligible for federal student loans. The lawsuit contends that private so-called “subprime” loans were pushed because the school needed to prove that at least 10% of its revenue came from private sources to qualify for lucrative federal education money.
Denial of Loan Discharge
Luciano applied to have her loans discharged due to misconduct committed by her school, but her request was denied. She claims that Navient used “boilerplate” language to deny her request and refused to explain why. The lawsuit seeks class action status for other Illinois borrowers who received similar denials.
A Year of Rejections
Luciano has applied three times to have her loans discharged, but each time she was denied. She has paid $52,035 of the original $138,000 in debt, but the remaining balance has ballooned to over $86,000 due to fees and interest.
A Call for Justice
Luciano’s lawsuit is not just about her own case, but about the thousands of other borrowers who were also misled by predatory for-profit schools and are now struggling to pay off their debts. She believes that Navient should be held accountable for its role in the student loan crisis.
Conclusion
The case highlights the need for greater accountability in the student loan industry and the importance of protecting borrowers from predatory practices. Luciano’s lawsuit serves as a reminder that borrowers should not be left to bear the burden of debt without a fair and just system in place to address their concerns.
FAQs
* What is the lawsuit about?
The lawsuit is about Navient’s alleged denial of Luciano’s request to have her student loans discharged due to her attendance at a “predatory for-profit” school.
* What is the total amount of debt Luciano has?
The total amount of debt is $138,000.
* How much has Luciano paid off so far?
She has paid $52,035 of the original debt.
* What is the current balance of Luciano’s debt?
The current balance is over $86,000 due to fees and interest.
* What is the goal of the lawsuit?
The goal of the lawsuit is to hold Navient accountable for its role in the student loan crisis and to ensure that borrowers are treated fairly and justly.
