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Navient was chartered in 1972 as a Government-Sponsored Enterprise (GSE) called Student Loan Marketing Association (nicknamed Sallie Mae). [4] [5] The company was created by Congress to support the student loan program established by the Higher Education Act of 1965. [6]
Despite demonstrating this financial hardship to Navient, the company did not enroll the student in an “income-driven plan” to lower payments until 2015, six years after they were first ...
Sen. Elizabeth Warren (D-Mass.) on Tuesday accused student loan servicing giant Navient of pushing its borrowers to refinance their federal loans into private ones, which would make them ...
In recent years, some student loan servicers have gone under legal scrutiny for alleged wrongdoing. Navient, formerly Sallie Mae, was charged with multiple class action lawsuits for their loan servicing methods. Navient was also sued by the Consumer Financial Protection Bureau (CFPB) for improper handling of borrower relations.
"The big changes were PHEAA, which serviced more than 9 million borrowers and Navient, which serviced 6-7 million borrowers," Mark Kantrowitz, author and student loan expert, told Yahoo Finance.
The acquisition allowed Earnest to be backed by a larger company with Navient planning to maintain the brand as a separate unit. [13] [14] In January 2018, Louis Beryl stepped down from his position as CEO. [15] In July 2018, Navient hired Susan Ehrlich as the new CEO. [16] In April 2019, Earnest launched its private student loan product. [17]
Navient is barred from federal student loan servicing and has to pay $120 million in fines and compensation to the borrowers harmed by its practices, according to a proposed settlement with the ...
And earlier this year, Navient reached an agreement to outsource servicing of legacy loans from the Federal Family Education Loan Program to another servicer, MOHELA, starting July 1. Beyond the ban of servicing direct federal loans, the CPFB's order would also bar Navient from acquiring most of those FFEL loans, which are federally-backed ...