Student Loan Borrowers Press For Navient Bankruptcy
By Rick Archer (February 9, 2021, 8:41 PM EST) -- Three student loan borrowers are asking a New York bankruptcy judge to declare student loan servicer Navient Solutions bankrupt, arguing the company is insolvent and that their claims for wrongful collection would be lost in the shuffle of a voluntary Chapter 11.
In a petition filed Monday, the borrowers argue that Navient is facing a $4 billion federal suit that would put it $1.6 billion in the red, left to choose between attempting to reclaim collateralized loans or filing for Chapter 11.
"Whether the administration initiates massive debt cancellation before that, or else the market comes to its sense and makes...
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