Navient controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
Back to profile7 entries
2024
CFPB federal-servicing ban and monetary relief
A proposed Consumer Financial Protection Bureau settlement barred Navient from servicing most federal student loans and required $20 million in penalties plus $100 million in borrower compensation.
2022
Multistate settlement over repayment-plan and lending allegations
Navient agreed to a proposed $1.85 billion settlement spanning 39 states and the District of Columbia. The package included reported loan cancellations and payments to borrowers in response to allegations involving costly repayment plans and private lending.
2022
Navient reaches multistate settlement over student loan practices
Settlement
Navient agreed to provide $1.85 billion in borrower relief to settle claims that it steered borrowers away from favorable repayment plans. The multistate agreement involves 39 states and is expected to affect 66,000 borrowers through restitution payments or private loan forgiveness.
Company response
Denial — Navient
Navient did not admit fault in the settlement and maintained that the company did not act illegally.
Source excerpt
Navient, one of the nation's largest student loan companies, will provide $1.85 billion in relief to borrowers to settle claims the company steered them away from favorable repayment plans as part of a multistate agreement announced Thursday.
It will affect 66,000 borrowers nationwide, who will receive relief in the form of restitution payments or private loan forgiveness.
Navient, one of the largest student loan servicing companies in the US, has made a $1.85bn settlement with a coalition of attorneys general who accused the company of predatory loan practices.
2021
Alleged overcharging connected to former Sallie Mae operations
Reference material reported that the Department of Education ordered Navient to pay $22.3 million in connection with alleged overcharging by the company’s former parent company in a decades-old matter.
2018
Collection efforts involving deceased borrowers and cosigners
Reports stated that Navient attempted to collect certain private loans from cosigners after a student borrower’s accidental death, prompting additional criticism of the company’s collection practices.
2017
CFPB and state allegations over borrower servicing
A complaint alleged that Navient failed borrowers through repayment-plan steering, payment-processing errors, inaccurate credit reporting involving disabled borrowers and veterans, and misleading information about private-loan cosigner release.
2015
Servicemembers Civil Relief Act interest-charge settlement
The Department of Justice announced that approximately 78,000 service members would receive compensation after allegations that Navient charged excess interest on protected student loans. Navient settled without an admission described in the reference material.