Navient press conference celebrating the opening of their headquarters.
Navient asked for the federal charges levied against them in January to be dismissed, claiming that the lawsuit filed by the Consumer Financial Protection Bureau (CFPB) incorrectly details noncompliant practices with new regulations as the basis of the law suit.
CFPB’s lawsuit alleged that Navient "systematically and illegally" failed borrowers, committing such acts as giving the wrong payment information to borrowers, processing their payments incorrectly, not responding to customer complaints, and failing to help borrowers who were having difficulty making their monthly payments.
This round of bad news for Navient followed a dismal quarter for the student loan servicer, rounding out 2016 with a drop in earnings. Despite these recent developments, Navient is the country’s largest student loan servicing company, covering more than $300 billion in federal and private loans from over 12 million borrowers and 6 million accounts from the nation’s Department of Education.Conducted by The Student Loan Report, a recent survey of 507 Navient customers showed that the company might not be as bad as CFPB’s lawsuit contends. 66.78 percent of respondents claimed that they had not been deceived by Navient. In addition, 70.22 percent reported that the company had never failed to correctly apply or allocate their payments, and 64.5 percent believed that Navient never steered them towards using a federal forbearance program. The results of this survey shed some insight on the developing situation between Navient and the Consumer Financial Protection Bureau.
Image Copyright © Jack Markell