Feds sue largest student loan servicer in the U.S., alleging it cheated borrowers

Richard Cordray.
(Image credit: Getty Images)

On Wednesday, the Consumer Financial Protection Bureau sued Navient Corp., the country's largest servicer of student loans, claiming the company violated several acts and went out of its way to cheat borrowers.

"For years, Navient failed consumers who counted on the company to help give them a fair chance to pay back their students loans," CFPB Director Richard Cordray said in a statement. "At every stage of repayment, Navient chose to shortcut and deceive consumers to save on operating costs. Too many borrowers paid more for their loans because Navient illegally cheated them and today's action seeks to hold them accountable." Navient, formerly part of Sallie Mae, services private and federal loans worth more than $300 billion for more than 12 million borrowers.

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Catherine Garcia, The Week US

Catherine Garcia is night editor for TheWeek.com. Her writing and reporting has appeared in Entertainment Weekly and EW.com, The New York Times, The Book of Jezebel, and other publications. A Southern California native, Catherine is a graduate of the University of Redlands and the Columbia University Graduate School of Journalism.