IN RE: EVAN BRIAN CROCKER V. NAVIENT SOLUTIONS, LLC AND NAVIENT CREDIT FINANCE CORPORATION

 A lawsuit alleging that some student loan debtors who have declared bankruptcy do not have to pay back some of their loans has settled – borrowers who were discharged from bankruptcy in the United States Court of Appeals for the Fifth Circuit will receive relief.

August 2021 Case Update – Preliminary Settlement Notice

As you may be aware, we filed a lawsuit alleging that, under Federal bankruptcy law, private non-qualified education loans made or serviced by Navient should have been “discharged,” or cancelled, in bankruptcy proceedings having taken place since October 2005. Private non-qualified education loans include loans made to attend non-Title IV accredited schools, or for programs such as trade schools or certain post-graduate programs. More information about whether you have a covered loan and about the lawsuit more generally is available at www.navientclassaction.com.

In August 2021, the Plaintiffs and the Class and the Navient Defendants reached a proposed referred to as the “Settlement Class.” With some limited exceptions, described below, the Settlement Class includes all individuals who meet each of the following criteria: (1) they filed for bankruptcy protection in any United States Bankruptcy Court located in Texas, Louisiana, or Mississippi on or after October 17, 2005; (2) before their bankruptcy filing, they became obligated to repay one or more “Covered Student Loans,” either as a borrower or as a co-borrower; (3) they obtained in their bankruptcy case an order of discharge issued by the bankruptcy court; and (4) they have never reaffirmed their “Covered Student Loan(s).” For purposes of the proposed settlement, a “Covered Student Loan” is generally defined as a student loan that: (a) was not made, insured, or guaranteed by a governmental unit or non-profit institution; (b) was not made under any program funded in whole or in part by any governmental entity or non-profit institution; (c) was for attendance at a school that was not accredited under Title IV of the Higher Education Act of 1965; and (d) is owned or serviced by Navient Solutions LLC or Navient Credit Finance Corporation. The specific loans that are covered by the Settlement are listed on a “Covered Loan List” that is attached to the Settlement Agreement.

The full terms of the Settlement Agreement can be viewed here: Class Notice, and the full Motion for Preliminary Approval can be viewed: Motion for Preliminary Approval.The Settlement Agreement provides that Navient will:

· Forego collection of any outstanding balances (including principal, interest, and fees) on any and all Covered Student Loans listed on Exhibit 1 to the Settlement Agreement. Under this agreement, Navient will never again attempt to collect from you any amounts on Covered Student Loans listed on Exhibit 1. (You do not have to submit a Certification Form in order to
receive this benefit.)
· Take steps to delete all trade lines at credit-reporting agencies about your Covered Student Loan or Loans listed on Exhibit 1 to the Settlement Agreement or update the trade lines to reflect that the Loan was or Loans were subject to a bankruptcy discharge. (You do not need to submit a Certification Form to obtain this benefit.)
· Repay to you any amounts collected by Navient since the date of your bankruptcy discharge that are identified in the Automatic Refund column on Exhibit 1 to the Settlement Agreement. (You do not need to submit a Certification Form to obtain this benefit.) In the event that one of your loans has both a borrower and a co-borrower discharged in bankruptcy, Navient will refund amounts to the primary borrower on the loan as listed on Exhibit 1 to the Settlement Agreement.
· Repay to you any portion of the amounts collected by Navient since the date of your bankruptcy discharge that are identified in the Conditional Refund column on Exhibit 1 and that were paid to Navient by you from your personal funds. Navient will not repay to you any portion of the amounts in the Conditional Refund column on Exhibit 1 that were paid to Navient by any co-borrower or by any person other than you. (To obtain this benefit under the settlement, you must submit a Certification Form, under penalty of perjury, identifying the portion of the amounts in the Conditional Refund column that were paid to Navient by you.)

Please view the full terms of the Settlement Agreement using this link: Class Notice, and the full Motion for Preliminary Approval using this link: Motion for Preliminary Approval.

2017 Case Overview

If you have received an email regarding the class action captioned In re: Evan Brian Crocker v. Navient Solutions, LLC and Navient Credit Finance Corporation, then you have been identified in a court proceeding as possibly being eligible to join a class action lawsuit regarding repayment of your student loans. This Notice was sent for the sole purpose of notifying those persons who may be entitled to participate in this case, of an Agreed Order entered by the Court suspending collection communications from Navient Solutions, LLC and Navient Credit Finance Corporation to certain educational loan borrowers. The Court has not yet ruled on the merits of claims or defenses asserted by any party to the case. There is no assurance at this time that any relief will be granted, nor if granted, the nature and amount of relief. Even if you have not received an email regarding this lawsuit, but you have declared bankruptcy since October 2005 and you had, at the time of your bankruptcy, student loans owned and/or serviced by Navient Solutions and/or Navient Credit Finance Corporation, then you may be eligible to join this lawsuit. This lawsuit—In re: Evan Brian Crocker v. Navient Solutions, LLC and Navient Credit Finance Corporation—alleges that, under the law, certain loans made or serviced by Navient should have been “discharged,” or erased, in bankruptcy proceedings taking place since October 2005. The loans in question are known as “non-qualified education loans.” They include:

  • Private educational loans made to students attending non-Title IV accredited schools; and
  • Private loans that were not made for “qualified educational expenses,” meaning that the funds were not used for a traditional four-year college. These loans include career training loans and loans made to students for some post-graduate programs.

If you’d like to search for a specific school, or verify whether a school is Title IV, you can do that here. This lawsuit alleges that debtors with non-qualified education loans who have declared bankruptcy since October 2005 are not responsible to repay those loans to Navient. This lawsuit further alleges that debtors who have already repaid debts to Navient may be entitled to a refund of all or some of those payments.

Phishing and Scam Alert

On an unrelated note, we have received notice that at least some student loan debtors have been targeted in an internet phishing scam that suggests that class members need to pay money in order to participate in a class action lawsuit to be released from their student debt. In order to protect you from this and any other kind of similar scam, we wanted to notify you that we will never solicit money from you or any other class member, and that you do not need to pay any money to be a member of this class action lawsuit. We may contact you later to request information or documents in connection with a trial or settlement of this matter, but we will never request money directly from you.

Get More Information

For more information about this lawsuit and about whether you may qualify to join it, you may:

  • Fill out the form in the Contact Us section of this website, and one of our representatives will contact you; or 
  • Call (504) 523-2500 to speak to one of our representatives; or
  • See the Case Information or News Articles and Case Filings section of this website for basic information, links to court filings, and links to news reports regarding this lawsuit.