- October 1, 2021
- Posted by: Stratford Team
- Category: Business
If it gets the authorization, about 6 million loan borrowers will be sending their monthly payments to a new servicer. Navient plans to transfer those loans to Maximus, a company that already contracts with the Department of Education to service student loans in default.
The agency is reviewing documents from Navient and Maximus to “ensure that the proposal meets all legal requirements and properly protects borrowers and taxpayers,” said Richard Cordray, the chief operating officer of federal student aid, in a statement.Navient was sued in 2017 for allegedly processing payments incorrectly by the Consumer Financial Protection Bureau when Cordray was at the helm of that federal agency. Navient has denied the allegations and the lawsuit is ongoing. It has also faced lawsuits from several state attorneys general. The company has been a repeated target of consumer advocates and progressives, including Sen. Elizabeth Warren, a Massachusetts Democat who…