Navient Hit With Suit Over 'Deceptive' Student Loan Practices

By Dan Packel (October 5, 2017, 2:42 PM EDT) -- Pennsylvania's attorney general Thursday accused Navient Corp., the nation's largest servicer of student loans, of unscrupulous conduct in both originating private student loans and servicing private and federal loans.

Attorney General Josh Shapiro said in a federal court lawsuit that Navient, a successor to Sallie Mae, pushed subprime loans that were likely to default as part of a ploy to expand its market share and that it steered financially troubled borrowers into costly forebearances rather than income-based repayment plans.

"Navient's deceptive practices and predatory conduct harmed student borrowers and put their own profits ahead of the interests of millions of families...

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