According to Bloomberg, Navient is looking to buy $3.7 billion of federal student loan accounts from JPMorgan Chase. This follows the recent actions by the State of Illinois and the Consumer Financial Protection Bureau who alleged Navient sucks and does a piss poor job managing student accounts already.
“Navient, the nation’s largest student loan company, announced on Tuesday that it had struck an agreement with JPMorgan to purchase the bank’s $6.9 billion portfolio of student loans, half of them guaranteed by the federal government under a since-discontinued lending program. Navient has been trying to boost its holdings of government-guaranteed student debt—Congress voted to eliminate the bank-based Federal Family Education Loan program in 2010—as older loans are repaid and revenue dwindles. The company would gain some 385,000 borrowers under the deal, which Navient expects to finalize by the end of June, Chief Executive Officer Jack Remondi said on Wednesday.”
Allowing Navient to grow larger would be a serious mistake, according to Illinois Attorney General Lisa Madigan. “It’s shocking that Navient could be allowed to take on a greater number of student loans when it has already failed so many Americans struggling to repay their loans,” Madigan said.
Navient spokeswoman Nikki Lavoie said the company’s proposed purchase “is a win for borrowers. Navient has a well-established, superior track record of helping student loan borrowers succeed in repayment.”
Would that be the same track record where Navient Says They Are Not Required to Provide Good Advice to Debtors.