Largest Student Loan Servicer Sued by CFPB

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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.