Education loan business Navient used misleading methods, Dept. Of Education review suggests

Education loan business Navient used misleading methods, Dept. Of Education review suggests

Gan Golan from Los Angeles, dresses because the “Master of Degrees, ” while keeping a ball and string representing their college loan financial obligation. (Picture: AP Photo/Jacquelyn Martin)

NY (AP) — One associated with the nation’s student loan servicing companies that are largest might have driven thousands of borrowers struggling using their debts into higher-cost payment plans.

That’s the finding of the Department of Education review of methods at Navient Corp., the nation’s third-largest student loan servicing business.

The conclusions for the 2017 review, which so far have already been held through the general public and had been acquired because of The Associated Press, may actually help federal and state lawsuits that accuse Navient of boosting its profits by steering some borrowers to the high-cost plans without talking about options that will have already been cheaper into the long term.

The training division hasn’t shared the findings that are audit’s the plaintiffs when you look at the legal actions. The department repeatedly argued that state and other federal authorities do not have jurisdiction over Navient’s business practices in fact, even while knowing of its conclusions. More →