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NAVIENT CORP UNDER SCRUTINY ABOUT POSSIBLY CHEATING MILITARY SERVICEMEMBERS ON FEDERAL STUDENT LOANS

  • Jared Hartman, Esq.
  • Posted on March 23, 2016

 

On March 1, 2016, Huffington Post Chief Financial and Regulatory Correspondent Shahien Nasiripour published an article that alleges the public was misled about whether Navient Corp. (under its former name Sallie Mae) violated the U.S. Servicemembers Civil Relief Act by intentionally and systematically overcharging troops on student loans for nearly a decade by failing to lower interest rates to 6% as required by the federal law. Nasiripuor writes that an internal investigation shows, “In Navient’s case, the department improperly credited the company for modifying some troops’ loans when records show that the interest rate reductions had been backdated.” He further writes,”DOJ data strongly suggested that the Education Department missed thousands of violations of federal law when it publicly exonerated Navient” and “In November, another official at the federal consumer bureau said that hundreds of thousands of troops have been forced to make at least $100 million in student loan interest payments that they actually were exempt from.”

Mr. Nasiripour’s March 1, 2016 article can be read by clicking here: http://www.huffingtonpost.com/entry/education-department-misled-public-on-student-loan-contractors-probe_us_56d5d2a7e4b0bf0dab337e33.

Previously, on February 7, 2016, Mr. Nasiripour published an article that quotes current Democratic Presidential hopeful Hillary Clinton as stating that Navient Corp. is “doing some really terrible things” by “misleading” borrowers, and that Navient’s “behavior is outrageous” and she is “totally appalled” by the company. To put these statements into context, Nasiripour further wrote,

“Numerous government agencies have been investigating the nation’s largest student loan specialist over several years for allegedly overcharging borrowers and mistreating them in violation of the law. The Consumer Financial Protection Bureau in August told Navient, which collects borrowers’ monthly payments and counsels them on their repayment options, that it had amassed enough evidence to indicate the company violated consumer protection laws, and it might sue the company in court.”

Additionally, “New York state’s banking regulator and a group of state attorneys general are among the authorities probing Navient’s interactions with borrowers, such as its practice of threatening to seize assets from borrowers in good standing simply because a co-signer of their loan had died.”

Mr. Nasiripour’s March 1, 2016 article can be read by clicking here: http://www.huffingtonpost.com/entry/hillary-clinton-navient_us_56b7a886e4b01d80b246b214

If you or a loved one are experiencing unfairness, harassment, or oppression from Navient Corp., please do not hesitate to contact us for a free, confidential consultation to discuss whether your rights may have been violated.