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Navient Challenges U.S. Claim of $22.3 Million in Overcharges

  • Written by Steel Rose

Navient is a large loan servicer, managing more than $300 billion worth of federal student loan debt. Unfortunately, the company faces claims from time to time. One of these claims was that the Education Department overpaid Navient by around $22.3 million. Since the beginning of the 2000s, the company was requested to refund the overpaid amount. However, it did not admit any wrongdoing.

Previously, Sen. Elizabeth Warren raised attention to Navient and requested the company to repay the money. Recently, acting secretary Mitchell Zais ordered Navient to refund the amount again. This guide will discuss the evolution of the problem and how the Navient refund connects to student loans.

What Happened?

Dr. Mitchell Zais was assigned acting secretary of the Education Department when Betsy DeVos resigned on January 8th, 2021. 

Later, when it was time to leave the office, Mitchel Zais ordered one of the biggest student loan companies of the U.S- Navient- to pay back $22.3 million. Zais alleged that Navient owed this money to the Education Department because Navient overcharged the organization. To read more click here

The Origin of Problem- 9.5% Return Guaranteed