Massachusetts Democrat puts loan-servicing giant in the crosshairs. But removing Navient from federal student loan program would be difficult, observers say.
In a sign of growing scrutiny of student loan companies, Senator Elizabeth Warren is urging the Trump administration to end its contract with Navient, one of the biggest contractors that collects payments on federal student loans.
Navient has a “more-than-decade-long history” of allegations of abusive consumer practices, wrote the candidate for the Democratic presidential nomination in an October 11 letter to Education Secretary Betsy DeVos. Signing the letter with Warren was Senator Richard Blumenthal, the Connecticut Democrat.
The two lawmakers also addressed the letter to Mark A. Brown, the chief operating officer of the Office of Federal Student Aid.
The company’s portfolio includes nearly 20 percent of all outstanding federal student loan debt. Its contract to manage those loans expires in December.
“As you consider these extensions, we urge you not to reward Navient’s blatant disregard for borrowers, taxpayers and the law,” Warren and Blumenthal wrote.