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 news release Wednesday. The CFPB is asking Navient to pay the borrowers the agency states were harmed.
The CFPB alleges that since at least January 2010, Navient misallocated payments, steered struggling borrowers toward multiple forbearances instead of income-driven repayment plans, and provided unclear information about how to re-enroll in income-driven repayment plans and how to qualify for a co-signer release among other things.
Navient denied the CFPB’s allegations in a declaration Wednesday, saying they have been false and politically determined. „Feds Sue Scholar Loan Giant Navient: Just Just What Borrowers Need to Understand“ weiterlesen