Student Loan Servicer Fights Back as States Eye Protections
AUGUSTA, Maine (AP) — A company that hopes to become the nation's single servicer of student loans under a plan backed by U.S. Education Secretary Betsy DeVos is lobbying against licensing efforts in Maine and elsewhere this year.
State records reviewed by The Associated Press show Navient Corp. has spent at least $44,000 since January on lobbyists in Washington state, Maine and New York, three states where lawmakers are considering such legislation.
California, Connecticut and Washington, D.C., have laws establishing licensing and oversight rules for student local servicers. At least 10 states this year considered similar bills.
The Consumer Financial Protection Bureau and Illinois and Washington's attorneys general have sued Navient, citing unfair and deceptive practices with lending and debt collection.
Navient calls such claims false and politically motivated.
Industry groups argue a patchwork of state laws will confuse students.