It took a long time but Navient is finally going to have to pay back money from activities with the Federal Family Educational Loan (FFEL) Program.
I’m not sure if you want to call this justice or not but it took about a decade to reach the decision and demand that Navient needs to repay the Department of Education $22.3 million in payments they were not eligible to collect.
At the heart of this matter are monies paid to Navient as a special allowance payment (SAP) by the Department of Education.
While Navient is having to pay up for the unearned payments, the matter really was a Sallie Mae issue. Navient absorbed it when they swallowed Sallie Mae.
Acting Education Secretary under Trump ordered Navient to make the refund. This was not a Biden administration whim.
The overpayments occurred because Sallie Mae was overcharging the government for the interest spread on FFEL loans.
If you want more on this, the Washington Post has a great article.
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