The federal consumer bureau has enough evidence to indicate the company violated federal consumer protection laws.
Federal regulators are considering suing Navient Corp., the nation’s largest student loan company, for allegedly cheating borrowers, the company said Monday.
The Consumer Financial Protection Bureau, which has been investigating the company for nearly two years, sent Navient a letter on Aug. 19 telling its executives that the agency’s enforcement staff had found enough evidence to indicate the company violated consumer protection laws, Navient disclosed Monday in a filing with the Securities and Exchange Commission. The CFPB also told Navient that the agency’s senior officials would now consider whether to sue the company in court.
The agency sent similar letters to for-profit college chains Corinthian Colleges Inc. and ITT Educational Services before it later sued them. Representatives for the CFPB didn’t respond to requests for comment.
Concerns are mounting among policymakers that the nation’s growing $1.3 trillion student loan tab risks slowing economic growth, as millions of households either struggling to make payments or cut back in other ways. And regulators and experts worry that shoddy loan servicing may be partly responsible, as many borrowers complain they’re routinely mistreated and forced to stump up larger monthly payments than required.