AUGUSTA, Maine — The nation’s largest servicer of federal student loans has lobbied against states’ efforts to license student loan servicers in Maine and elsewhere this year as it seeks to become the nation’s single servicer of student loans under a plan backed by U.S. Education Secretary Betsy DeVos.
State records reviewed by The Associated Press show Navient Corp. has reported spending at least $44,000 since January on lobbyists in Maine, New York and Washington, states where lawmakers are considering licensing requirements.
Lawmakers this year have considered such licensing and oversight bills in at least 10 states, including Illinois and Washington, whose state attorneys general have joined the Consumer Financial Protection Bureau by filing lawsuits accusing Navient of unfair and deceptive practices with lending and debt collection.
Navient calls such allegations false and politically motivated. Spokeswoman Nikki Lavoie said Navient has supported student loan policy reform to simplify repayment and better educate borrowers.
“We have engaged local representation in some states to make sure that policymakers have the facts on student loan servicing before they attempt to set servicing standards on federal student loans, which is likely to result in more complex, difficult and competing state-by-state processes for borrowers to navigate,” Lavoie said.
Critics say the Wilmington, Delaware-based company is only worried about profits and not the rights of the millions of Americans who carry student loan debt.
“I wish Navient would put more effort into training borrowers about repayment plans to keep borrowers out of default than lobbying to protect their bottom line,” said Natalia Abrams, executive director of advocacy group Student Debt Crisis.
