Navient is the country's largest student loan servicer, with over 12 million borrowers, including 300,000 students in Michigan, according to Navient spokesperson Nikki Lavoie.

Nessel's statement at the filing centered around a criticism of forbearance practices rather than income-based repayment plans. The Attorney General's office said that there is no update on their Navient brief.

Forbearance is a practice where loan payments are temporarily suspended or reduced if the borrower can't pay their loans, but interest still accumulates, increasing the overall total a borrower must pay.

An internal memo from 2010 unveiled an aim to steer borrowers into forbearance. The memo was part of several documents unsealed by a federal judge. The documents were part of a lawsuit filed against Navient by the Consumer Financial Protection Bureau, or CFPB, in 2017.

"At every stage of repayment, Navient chose to shortcut and deceive consumers to save on operating costs. Too many borrowers paid more for their loans because Navient illegally cheated them and today's action seeks to hold them accountable," CFPB Director Richard Cordray said in a 2017 statement.

“Our battle cry remains ‘forbear them, forbear them, make them relinquish the ball.' Said another way, we are very liberal with the use of forbearance once it is determined that a borrower cannot pay cash or utilize other entitlement programs,” a Navient executive said in the memo.

Corporation officials say the claims are unfounded.

"We are vigorously defending our record in court," Lavoie said via email. "Nationally, our analysis show that 98 percent of complaints related to federal policies or disagreements with loan terms such as interest rates, not servicer error."