Michigan Attorney General Dana Nessel signed a brief Friday, joining 30 other Attorneys General, against student loan servicer Navient, according to an Aug. 30 release.
The brief filed by Pennsylvania in a 2017 suit in U.S. Court of Appeals for the Third Circuit argues Navient was engaging in deceptive practices in finding borrowers for student loans.
The practices, according to Nessel’s office, include steering borrowers into forbearance instead of income-based repayment plans, which can result in more debt over time, misleading borrowers about when they needed to file documents, and making a series of processing errors that resulted in unnecessary fees and penalties.
Navient filed a motion in 2017 to dismiss this suit and was denied.
Since 2014, the Michigan Attorney General’s office has received 57 complaints about Navient, and the Consumer Financial Protection Bureau has received over 1,600 complaints since 2011, the release said.
The federal lawsuit seeks penalties and seeks an injunction, arguing that states have a “substantial interest in protecting their residents from all unfair and deceptive business practices.”
Student loan debt nationally totals over $1.5 trillion.
Nessel said in a statement that it is common knowledge that obtaining a college degree is not easy and the cost can be overwhelming. She urged all Michiganders who have concerns surrounding treatment from Navient or any other loan servicer to contact the office's Consumer Protection Division.
"To further burden those trying to improve their lives with deceptive or abusive business practices is unacceptable,” said Nessel. “Thousands of Michigan residents could be negatively affected by unscrupulous student loan servicers if we do not hold them accountable."
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