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STATEMENT: Maggie Thompson on CFPB Lawsuit Against Navient

FOR IMMEDIATE RELEASE

January 18, 2017

CONTACT: Kyle Epstein, 202-481-8137

kepstein@americanprogress.org

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) announced it is suing Navient, formerly part of Sallie Mae, for systematically failing borrowers who relied on its services to pay back student loans. Maggie Thompson, Executive Director of Generation Progress, issued the following statement in response:

“We hear constantly from borrowers who were deceived by Navient about their repayment options. We applaud the CFPB for standing up to their systematic failures with this lawsuit. Student loan servicers need to start acting more like loan counselors instead of debt collectors. Enrolling in an income-driven repayment plan should be a streamlined and simple process for borrowers. Far too often distressed borrowers are failed by Navient when they try to find a path to sustainable repayment on their loans. Navient preyed on the most vulnerable borrowers to stretch a profit and this lawsuit is welcome news to the borrowers they let down.

Protecting the rights of borrowers from predatory behavior from companies like Navient is exactly why we need a strong CFPB looking out for students and families struggling with their loans.”

For more information or to speak with an expert, contact Kyle Epstein at kepstein@americanprogress.org or 202.481.8137

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