Navient CEO on the California Attorney General lawsuit: Instead of filing lawsuits, here is what states should be doing to ad...
June 28 2018 - 5:16PM
Jack Remondi, president and CEO of Navient (Nasdaq:NAVI), today
issued the following statement on the lawsuit announced by the
California Attorney General:
The allegations are unfounded, and the lawsuit is another
attempt to blame a single servicer for the failures of the higher
education system and the federal student loan program to deliver
desired outcomes.
Servicers for the U.S. Department of Education do not:
- License schools to operate
- Admit students or set tuition prices
- Determine loan eligibility, loan amounts or loan terms
- Make, own or have a financial interest in the loans
- Design the complex and confusing repayment options and
enrollment requirements for borrowers
- Provide financial advice to students and families about the
total cost of earning a degree, how much to borrow and whether the
amount borrowed is reasonable as all of these decisions are made
prior to the servicer entering the picture.
The need to blame someone has driven these lawsuits. Ironically,
to date, this focus has been on the one servicer, Navient, that
leads the industry with the lowest default rates and the highest
enrollment in alternative repayment programs.
If the parties were truly interested in addressing the real
issues in higher education and student debt, they would direct
their focus to:
- Improve financial literacy of students and families and provide
better information about the full cost of earning their degree and
the cost of any debt incurred to finance that degree—before they
enroll in college
- Work to increase graduation rates—dropping out of school is the
single largest factor in student loan defaults, and
- Simplify the repayment programs and ease the enrollment process
for these programs.
These steps are not easy and require hard work. It is,
unfortunately, much easier to file a lawsuit, creating the
perception that something is being done.
Navient will continue to vigorously defend our company with the
facts and our strong performance and support our customers’
success. More information is available at
Navient.com/legalfacts.
About NavientNavient (Nasdaq:NAVI)
is a leading provider of asset management and business processing
solutions for education, health care and government clients at the
federal, state and local levels. The company helps its clients and
millions of Americans achieve financial success through services
and support. Headquartered in Wilmington, Delaware, Navient also
employs team members in western New York, northeastern
Pennsylvania, Indiana, Tennessee, Texas, Virginia, Wisconsin,
California and other locations. Learn more at navient.com.
Contact:
Media: Paul Hartwick,
302-283-4026, paul.hartwick@navient.com
Nikki Lavoie,
302-283-4057, nikki.lavoie@navient.com
Investors: Joe Fisher, 302-283-4075,
joe.fisher@navient.com
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