Boston - National Consumer Law Center advocates applauded the California Attorney General, Xavier Becerra, for taking decisive action today to protect student loan borrowers from abusive student loan servicing practices. Attorney General Becerra filed a lawsuit against Navient Corporation (Navient) and its subsidiaries, Pioneer and General Revenue Corporation debt collection agencies. The suit alleged misconduct resulting in borrowers being steered into repayment options that were lucrative for the companies and often harmful to borrowers.
“Navient and other federal student loan servicers and debt collectors are the gatekeepers to many of the flexible repayment options offered by the Higher Education Act and thus wield substantial power over the financial stability of nearly 43 million student loan borrowers,” said Persis Yu, director of National Consumer Law Center’s Student Loan Borrower Assistance Project. Unfortunately, as has been extensively documented, the student loan debt collection and servicing industries have long been rife with misconduct. “When servicers and debt collectors act abusively and deceptively, the harm can be long-term and irreparable,” said Yu.