State Take Aim at Student Loan Servicer

Michigan has joined a multi-state lawsuit against one of the nation’s largest student loan servicers.

The action against Navient was begun in Pennsylvania, but now includes 30 other states. Pennsylvania authorities allege that Navient engaged in unfair and deceptive practices, including consistently making payment processing errors that added unnecessary penalties and fees.

Since 2014, the Michigan Attorney General’s Consumer Protection Division has received 57 complaints regarding Navient. The Consumer Financial Protection Bureau received 1,628 student loan complaints and 330 student loan debt collection complaints from Michigan regarding Navient between 2011 and 2017.