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Newly Released Documents Show Navient Intentionally Plotted to Drive Student Loan Debtors Into Harmful Forbearance

According to this post at the Student Borrower Protection Center, forbearance steering was Navient’s strategy.

“In a June 2010 internal strategy memo written by a senior Navient executive, the company lays out its strategy for handling borrowers in distress. It’s clear from the memo that the company was VERY focused on protecting its bottom line, but had no regard for consequences to borrowers. To make sure that Navient executives never lose track of the plan, a Senior Vice President for Customer Service made up this catchy refrain:

This explains *why* CFPB enforcement attorneys found a corporate culture across the company that drove Navient personnel to push forbearance over IDR. As CFPB explains, even when Navient supervisors identified instances where a borrower was steered into forbearance, “a [customer service] representative’s conduct would not be written up in any way or lead to any sort of warning.”

The rest of their post is worth a read, here.

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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