Education Department orders Navient to refund $22.3 million in decade-old student loan scandal
Danielle Douglas-Gabriel, The Washington Post
Feb. 1, 2021
FacebookTwitterEmail
Before leaving office, acting Education Secretary Mitchell Zais ordered Navient, one of the nation s largest student loan companies, to refund $22.3 million that it allegedly overcharged the Education Department more than a decade ago.
In the early 2000s, the department s inspector general found several private lenders, including Navient s former sister company Sallie Mae, overcharged the federal government by tens of millions of dollars.
Investigators recommended in 2013 that the department have Sallie Mae return the estimated $22.3 million owed, but the company denied wrongdoing. Navient, which assumed Sallie Mae s liabilities when the companies parted ways, continued to fight the audit and appealed to the Trump administration.
Press release content from Globe Newswire. The AP news staff was not involved in its creation.
Navient posts fourth quarter 2020 financial results
Navient CorporationJanuary 26, 2021 GMT
WILMINGTON, Del., Jan. 26, 2021 (GLOBE NEWSWIRE) Navient (Nasdaq: NAVI), a leading provider of education loan management and business processing solutions, today posted its 2020 fourth quarter financial results. The complete financial results release is available on the company’s website at Navient.com/investors. The results will also be available on Form 8-K on the SEC’s website at www.sec.gov.
ADVERTISEMENT
Navient will hold a conference call tomorrow, Jan. 27, 2021, at 8 a.m. ET, hosted by Jack Remondi, president and CEO, and Joe Fisher, CFO.
Student loan companies return to court to collect on private education debt
Danielle Douglas-Gabriel, The Washington Post
Jan. 21, 2021
FacebookTwitterEmail
While the federal government continues to pause the collection of defaulted student loans during the coronavirus pandemic, private companies that initially followed suit are back in court.
Private education lenders and creditors have resumed filing new lawsuits and continuing existing cases to recover past-due debts, according to court records. Many companies had vowed to halt collections litigation as Americans faced layoffs and wage reductions in the beginning of the health crisis.
But despite tens of thousands of people still losing their jobs, student loan companies are again seeking payment. Attorneys for some of the largest private education debt creditors have filed dozens of lawsuits in several states since at least the summer.