New York leads multistate coalition supporting Pennsylvania lawsuit against Navient

New York Attorney General Letitia James

New York led a coalition of 32 states supporting the lawsuit filed by Pennsylvania against Navient, the largest student loan company in the United States.

Last year, Pennsylvania Attorney General Josh Shapiro sued Navient for allegedly committing abusive, deceptive and unfair practices in connection with its student loan origination and servicing.

On Friday, New York Attorney General Letitia James together with 31 other state attorneys general filed an amicus brief amicus brief in the U.S. Court of Appeals for the Third Circuit in support of Pennsylvania’s lawsuit.

In the amicus brief, the coalition defended their ability to enforce state and federal laws against student loan servicers. They requested the court of appeals to allow Pennsylvania’s case against Navient to proceed.

State AGs argue Pennsylvania can sue Navient under federal consumer protection law

The coalition argued that the federal Higher Education Act does not preempt state law claims. Pennsylania has the right to sue Navient under the federal Consumer Financial Protection Act, which was adopted as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.