The Consumer Protection Financial Burea(CFPB) just filed a lawsuit against
the larges student loan servicing company in the country, Navient, formally
known as Sallie Mae. Navient was accused of intentionally making it difficult
for borrowers to repay their student loans, not timely providing information
or providing wrong information and processing payments incorrectly and
hiding information which resulted in members of the public being charged
extra fees and higher rates of interest and hurting their credit. No case
this big has ever been brought against a company involved in the student
loan company before. How exactly the case may be resolved is unclear,
no one should expect to receive a letter by the time it is over telling
them that their student loans have been discharged. More likely is that
Navient is fined in some manner, though if members of the public are fortunate
they might get a portion of the funds in reparations.
The announcement made by the CFPB can be
reviewed here for more details.