Student Loan Servicers Exemptions from 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. Allegations abound by consumers who say student loan servicers continue making robocalls and autodialings without consent. 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, commercial banks issued student loans directly to students. The federal government only guaranteed certain loans or provided other, more limited, direct aid. Now, the government owns the the vast majority of all student loans. According to the U.S. Treasury Department’s annual financial report, student loans make up 36% of the government’s assets.

Debt Collection Laws

A recent Congressional proposal exempts collection agencies or debt collectors from TCPA prohibitions against robocalls when collecting federal debt. This is terrific news for companies like Sallie Mae, Navient, and Nelnet, but is unfortunate for most consumers. For those with student loan debt, it means they can be harassed with unwanted robocalls and text messaging.

The TCPA prohibits abusive practices by placing strict limitations on the use of automated calls and texts. 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 student loan servicers, contact Maginnis Howard today. Our attorneys have years of experience holding debt collectors accountable for their unlawful actions. You can contact us at (919) 526-0450 or through our confidential contact page. You can also subscribe to our mailing list to learn about your rights as a consumer.