California sues nation's largest student loan servicer
SACRAMENTO, Calif. (AP) — California’s attorney general announced Thursday he is suing the nation’s largest student loan processor, alleging it is harming consumers by failing to properly service the debts.
Attorney General Xavier Becerra said the state will sue Navient Corp. this week, contending the Delaware-based company financially harmed thousands of Californians.
He said the firm systematically and illegally failed to properly service federal student loans by steering borrowers to more expensive repayment plans, failing to tell them how to switch to income-driven repayment plans or how those with disabilities could end their debts and misrepresenting how it handled payments.
“No one should have their American dream shattered because some loan servicing company is cheating these future leaders of a chance to move ahead,” Becerra said, a Democrat running in the November election.
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