Warren calls for solutions from Navient about pupil mortgage “rip-off” reviews

Sen. Elizabeth Warren (D-Mass.) raised issues Tuesday that one of many nation’s largest pupil mortgage providers could also be deceptive debtors.

Driving the information: Warren and Rep. Ayanna Pressley (D-Mass.) despatched a letter to Navient demanding solutions about “troubling reviews” that it’s “trying to rip-off debtors out of pupil debt reduction” by offering “deceptive data” that would make them ineligible for mortgage forgiveness.

  • After the Biden administration introduced its pupil mortgage reduction plan final month, Naviant despatched out notices to individuals who might be eligible for mortgage cancellation, encouraging them to refinance in order that they’d now not be eligible, Warren mentioned.

What they’re saying: “If these reviews are correct, they reveal a very nefarious and dangerous last-ditch tactic by Navient to profiteer off of the hardship of debtors that lastly are inside greedy distance of acquiring reduction from their abusive pupil loans,” the 2 lawmakers mentioned within the letter.

  • “Whereas households are respiration a sigh of reduction, companies that made billions of {dollars} off a damaged pupil mortgage system are actually busily laying new traps in a shameless last-ditch effort to attempt to line their pockets,” Warren mentioned throughout a Senate Banking, Housing and City Affairs Committee listening to Tuesday.

The opposite aspect: Navient mentioned in a press release to The Hill that potential repercussions of refinancing are made clear to debtors, together with in its promotional emails, web site and utility.

For the report: Earlier this yr, Navient reached a $1.85 billion settlement with a coalition of 39 state attorneys normal to resolve allegations of predatory pupil mortgage servicing practices.

  • Navient was accused of steering struggling pupil mortgage debtors into expensive long-term forbearances.
  • Navient didn’t instantly reply to Axios’ request for remark.
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