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AG Shapiro sues student loan company for widespread abuses

VIDEO: Shapiro sues student loan...

HARRISBURG, Pa. - Navient Corporation, the nation's largest servicer of federal and private student loans, is now facing a lawsuit. 

Attorney General Josh Shapiro filed a lawsuit Thursday against the corporation and its subsidiary, Navient Solutions, LLC, over widespread abuse in their student loan origination and servicing businesses. 

The lawsuit could impact thousands of Pennsylvanians, including anyone who received private student loans from Sallie Mae - one of Navient's predecessors.

“Navient’s deceptive practices and predatory conduct harmed student borrowers and put their own profits ahead of the interests of millions of families across our country who are struggling to repay student loans,” Attorney General Shapiro said. “The more businesses like Navient put their bottom line ahead of the interests of their customers and consumers, the more vigilant we will be to protect Pennsylvanians and hold businesses like Navient accountable for their misconduct.

According to a news release from the general's office, over 1,000 Pennsylvanian's filed complaints against Navient with the Consumer Financial Protection Bureau. 

The lawsuit filed by Shapiro in the U.S. District Court for the Middle District of Pennsylvania asks the court to order full restitution to all borrowers affected by the unlawful practices and civil penalties to be determined among other orders. 

 


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