Feds Cut-off Student Loan Debt Collector Navient
According to Bloomberg.com, “The U.S. Education Department, citing ‘inaccurate representations’ to student-loan borrowers, will end debt-collection contracts with Navient Corp. and four other student loan debt collection companies.” Apparently, representatives from these companies repeatedly made untrue and misleading statements about repayment programs to borrowers.
Basically, the collection companies do not tell students about their best and lowest payment options, but rather, only the payment options that made the debt collector a lot of money. As if they are not making enough off student loans already. “In 2012, Bloomberg News reported that the private contractors chasing [federal student] debts collected about $1 billion annually in commissions.”
While it is great to hear that the federal government has stopped doing business with Navient, this is very disheartening news for borrowers with private student loans that are owned or serviced by Navient. Clearly, under-handed collection tactics are systemic in their business model. If you are a student borrowers with Navient loans, contact a debt settlement attorney who will defend your rights and protect you from harassing collection.