Tag: Navient

Education Dept. orders Navient to refund $22.3 million in decade-old student loan scandal

Investigators recommended in 2013 that the department have Sallie Mae return the estimated $22.3 million owed, but the company denied any wrongdoing. Navient, which assumed Sallie Mae’s liabilities when the companies parted ways, continued to fight the audit and appealed to the Trump administration.

Zais, who took over when Education Secretary Betsy DeVos resigned last month, has held the company liable to repay the money.

Navient spokesman Paul Hartwick said the company is assessing its options in the wake of the decision.

“We are disappointed with this ruling because we believe these practices were consistent with Department of Education guidance,

Read more

Student loan giant Navient and borrowers settle lawsuit over troubled forgiveness program

Student loan giant Navient (NAVI) promised to revamp a loan forgiveness program designed for public servants after settling a 2018 class action lawsuit from student loan borrowers.

The preliminary settlement — still subject to final approval by the court — requires Navient to “enhance its internal resources, maintain regular training and monitoring for call center representatives, update forms that are sent to borrowers and update its website.”

Read more: How to repay student loans: The full breakdown

Part of the settlement involves Navient providing $1.75 million to a nonprofit organization that will provide education and student loan counseling to public

Read more