California Attorney General Xavier Becerra said Thursday he plans to sue Navient, one of the nation’s largest student loan servicing companies, for alleged widespread abuses in the collection of education debt payments.
The forthcoming lawsuit will add to Navient’s legal woes. The company is fending off similar cases in Illinois, Washington and Pennsylvania as well as a lawsuit filed by the Consumer Financial Protection Bureau in the last days of President Barack Obama’s administration.
[Student loan servicer Navient hit with three government lawsuits in one day]
“Navient’s loan servicing abuses have compounded the misery of parents and students who sacrificed to pay for college,” Becerra said in a statement. “Our students can’t afford to be cheated out of any more money than they legally owe simply because Navient knew how to game the system. We are ready to hold Navient accountable.”
