Navient Faces Pennsylvania Suit Claiming Student Loan Abuses (1)

Pennsylvania got a nod from the Third Circuit on Monday to continue its consumer protection suit against Navient Corp. based on affirmative misrepresentations it allegedly made to borrowers while handling student loans.

The state can pursue its claims against Navient under the Consumer Financial Protection Act despite a concurrent action against the company by the federal government, the court said in an opinion by Judge Thomas L. Ambro. And the state’s claims under the Pennsylvania Unfair Trade Practices and Consumer Protection Law aren’t preempted by the federal Higher Education Act, the court said.

Pennsylvania claimed Navient deceptively originated risky student ...