Navient says politically driven lawsuit from Illinois Attorney General is unfounded
January 18 2017 - 2:56PM
Navient, the nation’s leading loan management, servicing and asset
recovery company, today issued the following statement on legal
action filed against it today:
The allegations of the Illinois Attorney General and Consumer
Financial Protection Bureau are unfounded, and the timing of these
lawsuits—midnight action filed on the eve of a new
administration—reflects their political motivations. Navient
welcomes clear and well-designed guidelines that all parties can
follow, and we had hoped our extensive engagement with the
regulators would achieve this objective. Instead, the suits
improperly seek to impose penalties on Navient based on new
servicing standards applied retroactively and applied only against
one servicer. The regulator-asserted standards are inconsistent
with Department of Education regulations, and will harm student
loan borrowers, including through higher defaults.
Navient has a well-established, superior track-record of helping
student loan borrowers succeed in repayment.
- 49 percent of loan balances serviced by Navient for the federal
government are enrolled in income-driven repayment plans.
Assertions that we do not educate borrowers about IDR plans ignore
the facts.
- Navient is a leader in advancing policy recommendations to
streamline enrollment and reenrollment in income-driven
plans—reforms which we believe would make a meaningful difference
for millions of Americans with student loans.
- Federal borrowers serviced by Navient are 31 percent less
likely to default than their peers at other servicers. Private
loan delinquencies and defaults are at among historic
lows.
- In 2009, Navient pioneered the first private education loan
modification program. The program was designed to help customers
stay current on their loans and, unlike federal program solutions,
make progress on repaying their principal balance. Today, more than
$2 billion in loan balances are enrolled in these programs.
Navient has a responsibility to its customers, shareholders, and
employees to defend itself—publicly and in court—against this
unsubstantiated, unjustified and politically driven action. We
cannot and will not accept agenda-driven ultimatums designed to get
headlines rather than help for student borrowers. We will
vigorously defend against these false allegations and continue to
help our customers achieve financial success.
Navient has posted additional information at
navient.com/facts.
About NavientAs the nation's leading loan
management, servicing and asset recovery company, Navient
(Nasdaq:NAVI) helps customers navigate the path to financial
success. Servicing more than $300 billion in student loans, the
company supports the educational and economic achievements of more
than 12 million Americans. A growing number of public and private
sector clients rely on Navient for proven solutions to meet their
financial goals. Learn more at navient.com.
Contact:
Media: Patricia Nash Christel, 302-283-4076, patricia.christel@navient.com
Investors: Joe Fisher, 302-283-4075, joe.fisher@navient.com
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