The U.S. Customer Financial Protection Bureau is suing Navient Corp., the nation’s largest student loan servicer, accusing it of “systematically and illegally failing borrowers at each phase of payment, ” according to a pr release Wednesday. The CFPB is asking Navient to pay the borrowers the agency claims had been harmed.
Among other activities, the CFPB alleges that since at the least January 2010, Navient misallocated repayments, steered struggling borrowers toward numerous forbearances in place of income-driven repayment plans, and offered ambiguous information on how exactly to re-enroll in income-driven payment plans and exactly how to qualify for the co-signer launch.
Navient denied the CFPB’s allegations in a statement Wednesday, saying they’re false and politically determined. The education loan giant, which broke faraway from Sallie Mae Bank, among the biggest loan providers of private figuratively speaking, in 2014, presently solutions significantly more than $300 billion in federal and student that is private for longer than 12 million borrowers. Continue reading “Feds Sue Scholar Loan Giant Navient: Just What Borrowers Need to Understand”