Education loan business Navient utilized practices that are deceptive Dept. Of Education review suggests
Gan Golan from l. A., dresses given that “Master of Degrees, ” while keeping a ball and string representing their university loan financial obligation. (Picture: AP Photo/Jacquelyn Martin)
NYC (AP) — One of this nation’s biggest education loan servicing businesses could have driven tens and thousands of borrowers struggling due to their debts into higher-cost payment plans.
That’s the finding of a Department of Education review of techniques at Navient Corp., the nation’s student loan servicing company that is third-largest.
The conclusions of this 2017 review, which so far have already been held through the general general public and had been acquired because of The Associated Press, seem to help federal and state lawsuits that accuse Navient of boosting its profits by steering some borrowers in to the high-cost plans without speaking about choices that could have already been less expensive into the long term.
The training division have not shared the audit’s findings with the plaintiffs within the legal actions. In reality, even when once you understand of the conclusions, the division repeatedly argued that state along with other federal authorities lack jurisdiction over Navient’s company methods.
“The presence of the review makes the Department of Education’s place even more troubling, ” said Aaron Ament, president associated with National scholar Legal Defense system, whom worked for the Department of Education under President Barack Obama.
The AP received a duplicate associated with the review as well as other papers through the workplace of Sen. Read more