Federal Regulators Prepare to File Law Suit Against Navient

Federal regulators are considering suing Navient Corp., the nation's largest student loan company, for allegedly cheating borrowers, reports The Huffington Post.

The Consumer Financial Protection Bureau (CFPB) has notified Navient that it has found sufficient evidence to indicate the company violated consumer protection laws and will now consider whether to sue the company in court. The agency sent similar letters to for-profit college chains Corinthian Colleges Inc. and ITT Educational Services before it later sued them. As reported by Inside Higher Ed, the Education Department is looking into Corinthian's apparent violation of the department's cash management regulations.

Navient has been under investigation for two years by several federal and state authorities for allegedly overcharging borrowers and otherwise mistreating them in violation of the law, the Post reported.

 

Related Links

The Huffington Post

http://www.huffingtonpost.com/entry/cfpb-considers-suing-student-loan-giant-navient-for-cheating-borrowers_55db83dee4b08cd3359cf4d3

Inside Higher Ed

https://www.insidehighered.com/news/2015/08/20/under-close-us-scrutiny-corinthian-apparently-mishandled-federal-funds-justice