Navient is a contractor to the Department of Education hired to service loans guaranteed by the government and loans made directly by the government. The CFPB alleges that “hundreds of thousands of borrowers,” were harmed by steering borrowers away from Income Driven Repayment (IDR) and towards costlier options.
However, court documents reveal that in nearly four years, the CFPB has produced exactly zero borrowers who have been “steered” as they allege. In fact, ultimately, the CFPB only produced 16 witnesses for deposition on this matter, none of whom remain part of the case after it was revealed that every single one of them had received multiple communications on the availability of IDR including via phone, email, and mail.
As the CFPB case withered for lack of evidence, partisan defenders of the CFPB such as organized labor, Democrats in Congress and a new activist group called the “Student Borrower Protection Network”--- conveniently headed by a former CFPB official-- have publicized the case and organized parallel cases against Navient to prop up the CFPB’s.
To read more about this rulling and it arrived, click here.