In a statement, AG James said, “When student borrowers struggle to make payments on their crushing debts, student loan servicers have an obligation to honestly inform them of the tools they can use to improve their finances, but Navient and many other servicers, instead, preyed upon and exploited these borrowers just to increase their profits.”
She added, “We must curb these abuses and ensure that student loan servicers comply with both state and federal consumer protection laws. Our bipartisan coalition is fighting to ensure that borrowers are protected, that states’ enforcement powers aren’t superseded, and that servicers can’t evade their legal obligations.”
On the other hand, California AG Xavier Becerra commented that Navient made “profits from the misery of parents and students who sacrificed to pay for college.”
He noted that the student loan services generated $395 million in profits last year alone.
“Our students can’t afford to be cheated out of any more money than they legally owe simply because Navient knew how to game the system,” added AG Becerra.
