Student Loan Giant Faces Trial Over U.S. Claim It Duped Borrowers
Navient is 0-2 when it comes to blocking allegations that it wrongly saddled them with billions of dollars in interest.
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Student loan giant Navient Corp., the industry’s largest, has suffered a pair of courtroom defeats in its attempt to block government lawsuits alleging borrowers had been mistreated.
The losses come in a trio of lawsuits filed in January by the U.S. Consumer Financial Protection Bureau and state attorneys general of Washington and Illinois. They collectively allege Navient mistreated hundreds of thousands of student debtors by taking shortcuts to minimize its own costs, while adding what the CFPB said was as much as $4 billion in interest charges to borrower loan balances.