The U.S. Consumer Financial Protection Bureau is suing Navient Corp., the nation’s largest student loan servicer, accusing it of “systematically and illegally failing borrowers at each stage of payment, ” according to a news release Wednesday. The CFPB is asking Navient to pay the borrowers the agency states had been harmed.
Among other items, the CFPB alleges that since at the very least January 2010, Navient misallocated repayments, steered struggling borrowers toward numerous forbearances in the place of income-driven payment plans, and offered uncertain information regarding just how to re-enroll in income-driven payment plans and exactly how to qualify for the co-signer release.
Navient denied the CFPB’s allegations in a statement Wednesday, saying they have been false and politically motivated. The student loan giant, which broke removed from Sallie Mae Bank, one of several biggest loan providers of personal student education loans, in 2014, presently solutions a lot more than $300 billion in federal and student that is private for over 12 million borrowers.
The Illinois and Washington solicitors basic also filed matches against Navient on Wednesday. Navient stated in subsequent statements Wednesday that allegations by the Illinois and Washington lawyers basic were additionally politically driven and “unfounded. ”
“Time will tell” what effect these legal actions have actually on borrowers, claims Betsy Mayotte, manager of customer outreach and conformity at United states scholar Assistance, a nonprofit that assists students pay money for college. But aside from outcomes, borrowers should check their student regularly loan records to be sure their loans are now being serviced precisely, she claims. Continue reading Feds Sue Scholar Loan Giant Navient: Exactly Just What Borrowers Need to Understand