The company formerly known as Sallie Mae is now Navient Corp. and currently the country’s largest student loan company.
The Consumer Financial Protection Bureau is now suing Navient for allegedly misleading students, bungling payment processes, and cheating borrowers out of lower repayment rates.
The lawsuit was filed on Wednesday by the CFPB and they are seeking financial relief for millions of student borrowers. The most shocking allegations is that Navient pushed low-income borrowers away from income-based repayment plans. The short-term solution they offer are forbearances that ultimately costs consumers more interest.
Navient’s company stock had an increase days after the election of Donald Trump coincidentally. Many are hoping Trump’s administration will work with the loan system and offer a better regulatory system.