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Warren Says Feds Should Fire Student Loan Servicer Navient (1)

April 13, 2021, 9:48 PM; Updated: April 14, 2021, 4:24 PM

Sen. Elizabeth Warren said the Education Department should drop its contracts with loan servicing giants Navient Corp. and Pennsylvania Higher Education Assistance Agency.

The companies are two of the biggest firms charged with handling payments on the $1.6 trillion federal student loan portfolio and administering programs like Public Service Loan Forgiveness. Warren (D-Mass.) said in a Tuesday hearing that those companies were responsible for systematic failures affecting student loan servicers.

“The federal government should absolutely fire Navient. And because this happened under your leadership, Navient should fire you,” she said. “But the problem is bigger than that.”

Flanked by Senate Majority Leader Chuck Schumer (D-N.Y.) and Rep. Ilhan Omar (D-Minn.), Sen. Elizabeth Warren (D-Mass.) speaks during a press conference about student debt in February 2021 in Washington, D.C.
Photographer: Drew Angerer/Getty Images

Warren said federal...

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