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New Jersey Attorney General Takes Aim at Major Student Loan Servicer

  • New Jersey AG Gurbir Grewal sued student loan servicer Navient Corporation and related companies and individuals (collectively “Navient”) over allegations of unconscionable practices and deceptive conduct in servicing federal and private student loans in violation of the New Jersey Consumer Fraud Act.
  • The complaint alleges that Navient, formerly known as Sallie Mae, Inc., used a variety of deceptive and misleading tactics, including failing to inform borrowers experiencing financial hardship about available loan-forgiveness programs or assist them in choosing the most appropriate repayment option, failing to inform borrowers in income-driven repayment plans of upcoming deadlines to recertify their eligibility for the program, and misleading borrowers about the amount by which their loans were delinquent.
  • The complaint seeks declaratory and injunctive relief, restitution, disgorgement, civil penalties, and attorneys’ fees and costs.