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Navient Systematically Cheated Student Loan Borrowers, Suit Says

June 24, 2020, 8:06 PM

Navient Corp. was hit with a proposed class action alleging the student loan servicer defrauds borrowers through a repayment system intended to maximize indebtedness by maximizing interest payments.

The complaint, filed on behalf of a proposed nationwide class of student loan recipients and four state subclasses, alleges that the company and related entities systematically misallocate payments to interest instead of principal in order to prevent borrowers’ loan balance from being paid down more quickly.

The plaintiffs also allege that Navient systematically allocates monthly payments to loans with lower interest rates as opposed to loan with higher interest rates.

Navient also...

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