AP Exclusive: Audit points to deceptive practices by Navient
NEW YORK (AP) — Never before publicly disclosed records show that Navient, one of nation’s largest student loan servicing companies, may have steered thousands of borrowers into higher cost repayment plans, and that the Department of Education may have kept these documents from authorities.
The audit, obtained by The Associated Press, appears to support federal and state lawsuits that accuse Navient of boosting its profits by steering some borrowers into the high-cost plans without discussing options that would have been less costly in the long run.
The education department hasn’t made the audit public or shared it with the plaintiffs in the lawsuits. In fact, even while knowing of the findings since May 2017, the department repeatedly argued that state and other federal authorities do not have jurisdiction over Navient’s business practices.