Navient Faces Enforcement Action From U.S. Regulator
- Regulator’s suit targets company spun off from Sallie Mae
- Navient says lawsuit unfounded and politically motivated
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Navient Corp., the largest servicer of student loans in the U.S., was sued by a U.S. regulator over allegations that the company “systematically” cheated borrowers.
Navient, formerly part of Sallie Mae, failed to properly service private and federal loans, provided incorrect information to borrowers, improperly processed payments and didn’t respond to complaints, the Consumer Financial Protection Bureau said in a statement Wednesday announcing the lawsuit.