Student loan giant sued by government for misleading borrowers
January 21, 2017
Navient (also known as Sallie Mae) is America’s largest student loan company, and it is now being sued by the Consumer Financial Protection Bureau following allegations that the company misled student borrowers.
Navient holds $300 billion in loans owed by 12 million borrowers, with a contract with the Education Department to hold 6 million federal student loans.
The suit against Navient claims that the company purposefully misprocessed payments and pushed borrowers away from potentially money-saving repayment options. The CFPB says that Navient misled borrowers into choosing forbearance, a short-term solution that potentially costs borrowers more in interest, rather than a longer income-based repayment plan.
Along with the CFPB, attorneys general in two states – Illinois and Washington – have filed lawsuits against Navient.
To read the full story by Buzzfeed News, click here.