Student education loans. (picture: Getty Images/iStockphoto)
The U.S. Consumer Financial Protection Bureau is suing Navient Corp., the nation’s largest student loan company, accusing it of “systematically and illegally failing borrowers at every phase of repayment, ” according to a news release Wednesday. The CFPB is asking Navient to pay the borrowers the agency claims had been harmed.
On top of other things, the CFPB alleged that since at the very least January 2010, Navient misallocated repayments, steered struggling borrowers toward numerous forbearances as opposed to income-driven payment plans, and offered uncertain details about simple tips to re-enroll in income-driven payment plans and just how to qualify for a co-signer launch.
Navient denied the CFPB’s allegations in a declaration Wednesday, saying these are generally false and politically determined. The education loan giant, which broke removed from Sallie Mae Bank — one of several biggest loan providers of personal student education loans — currently solutions significantly more than $300 billion in federal and student that is private for longer than 12 million borrowers.
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