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The U.S. Customer Financial Protection Bureau is suing Navient Corp., the nation’s largest student loan servicer, accusing it of “systematically and illegally failing borrowers at each period of re payment, ” according to a news launch Wednesday. The CFPB is asking Navient to pay for the borrowers the agency claims was indeed harmed.
Among other pursuits, the CFPB alleges that since at least January 2010, Navient misallocated repayments, steered struggling borrowers toward many forbearances rather than income-driven repayment plans, and provided uncertain facts about just how to re-enroll in income-driven repayment plans and precisely how to be eligible for the co-signer launch.
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