Last May, investigations by the Department of Justice and the Federal Deposit Insurance Corporation into student loans servicing resulted in a $100 million fine against government-contracted servicer Navient for allegedly violating federal laws limiting the amount of interest that can be charged on servicemember student loans. Following those investigations, the Department of Education undertook a review that found its four servicers – including Navient – weren’t cheating military personnel. With such conflicting reports, members of Congress are now getting involved, calling for an investigation into the Dept. of Education’s review process. [More]
Consumer Groups Urge CFPB To Provide Better Oversight, Rules Over Student Loan Servicing
Two months ago, the Consumer Financial Protection Bureau took the first steps in tackling issues within the student loan servicing arena by asking consumers and organizations to share their thoughts on the state of an industry that is tasked with recouping the more than $1.2 trillion in outstanding student loan debt in the U.S. Now, as the deadline to submit comments has come and gone, we know a bit more about just how the industry is perceived by those tasked with sticking up for consumers. [More]