Lawsuit Alleging Widespread Abuse By Student Loan Servicer Navient Given Judge's Go-Ahead
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HARRISBURG, Pa. (CBS/AP) — A Pennsylvania judge has ruled that a lawsuit alleging rampant abuse against student loan servicer Navient can proceed.
Navient is one of the nation's largest student loan servicers. It had filed a motion to dismiss the majority of the counts in the lawsuit. It had claimed federal laws prohibit states from filing claims when a federal consumer protection lawsuit is pending regarding the same conduct.
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Among the state's claims is that Navient steered borrowers into repayment options that were not in their best interests.
A judge ruled Monday to let the suit proceed. Navient is facing similar lawsuits in at least four other states.
Pennsylvania's attorney general's office says the average debt for new graduates with student loans in the state is about $37,000, the second highest in the country.
(©Copyright 2018 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.)
