Last Friday, California Attorney General Xavier Becerra filed a lawsuit challenging student loan giant Navient for its illegal practices—including misleading borrowers, steering them into more-expensive loan agreements, and failing to adequately inform them about how to remain enrolled in money-saving income-based repayment programs. Becerra also nails Navient for failing to release loans of borrowers who have a “total and permanent” disability. The loan company is responsible for $300 billion in federal and private student loans for 12 million borrowers, including about 1.5 million in California. Navient is calling the allegations “unfounded,” but Becerra has declared his office will hold the company accountable.
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