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Regulators, Consumers Target Student Debt Servicer Navient

While complaints about the student debt servicing industry are widespread, Navient in particular has become a focal point for regulators and consumers.

“Navient is one of the worst offenders in Illinois and around the country, steering borrowers toward forbearances that increase loan costs and applying repayments inaccurately,” said Erin Steva, Midwest director for Young Invincibles, an advocacy group for adults ages 18 to 34.

The CFPB received more complaints about Navient in a recent three-month period than it did about any other company in any industry. From November through January, the CFPB received an average of 1,439 complaints against Navient per month, according to an April report from the agency. The student debt company with the next-highest average was American Education Services, with 149.

Year to date, about 300 complaints from Illinoisans have been filed against Navient at the federal agency, more than double the number that piled up in all of 2016. Virtually all of the complaints lodged by Illinois consumers with the federal bureau received a timely response from Navient, agency records show.

The CFPB isn’t the only federal agency fielding complaints about Navient.

In June, a half-dozen consumer groups asked the Federal Communications Commission to take action against the company, accusing it of harassing borrowers with automated phone calls. And an Illinois man filed a federal lawsuit against the company in May seeking class-action status over robocalls.

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