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 every phase of payment, ” according to a pr release Wednesday. The CFPB is asking Navient to compensate the borrowers the agency states had been 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 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, in 2014, presently services a lot more than $300 billion in federal and student that is private for longer than 12 million borrowers.
The Illinois and Washington solicitors basic also filed suits against Navient on Wednesday. Navient stated in subsequent statements that allegations because of the Illinois and Washington solicitors basic were additionally politically driven and “unfounded. Wednesday”
“Time will tell” what effect these legal actions have actually on borrowers, says Betsy Mayotte, director of customer outreach and conformity at United states Student Assistance, a nonprofit that assists students buy college. But aside from results, borrowers should frequently check always their pupil loan records to be sure their loans are now being serviced properly, she states.
Just how to verify that Navient is the loan servicer
Your education loan servicer could be the business you create re re payments to every thirty days.Continue reading