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In 2022, Navient offered relief or restitution to select borrowers following a lawsuit by 39 state attorneys general. Eligible borrowers were notified by email in 2022 and received relief ...
The number of lawsuits against a prominent federal student loan servicer has grown recently. Federal student loan servicers, such as Nelnet and Navient Corp., are companies that collect payments ...
The lawsuit filed by Pennsylvania in 2017 included other examples. One student who enrolled in a master’s degree program did not complete the degree and struggled to repay the loan, it said.
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.
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]
The new agreement, filed in court on Thursday, stipulates that the CFPB would permanently ban Navient from directly servicing federal student loans. Of the $120 million Navient would have to pay ...
The guaranteed lending program was eliminated in 2010 because of a widespread perception that the government guarantees boosted student lending companies' profits but did not benefit students by reducing student loan costs. [17] Federal student loans are less expensive than private student loans.
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 ...