What exactly is Navient?
Navient try a family that qualities federal and personal college loans. Until recently, Navient got a contract so you’re able to service government student education loans belonging to the latest U.S. Agencies of Knowledge, together with a huge number of loans made under the Lead Mortgage Program and you can a smaller sized level of finance produced under the Government Family unit members Education loan (FFEL) System. To the , the new U.S. Service away from Studies revealed the brand new transfer from the package away from Navient so you’re able to Aidvantage, a department regarding Maximus Federal Features, Inc. But not, Navient continues to solution government student loans produced under the FFEL Program that are owned by private loan providers plus non-government private college loans.
Navient was created from inside the 2014, when the business next called Sallie Mae (officially, SLM Firm), separated the financing maintenance and you may data recovery providers from its user banking team. Adopting the break up, the business’s financing repair and range operations had been lso are-branded once the Navient, and the individual banking team proceeded beneath the Sallie Mae brand name.
What’s that it payment regarding the?
New Massachusetts Lawyer Standard and other state Lawyer Standard submitted litigation facing Navient alleging your team and its particular subsidiaries broken user cover regulations from the stepping into unfair and you may deceptive upkeep and collection methods and you can, because the Sallie Mae, originating predatory subprime private student education loans . On top of other things, the latest Lawyer General keeps so-called that:
- Even with promising to simply help borrowers find a very good repayment options to get rid of attention will cost you, Navient deceptively steered upset government mortgage borrowers with the costly long-title forbearances rather than advising them concerning benefits of income-driven installment arrangements. Read more
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