News

Senate Democrats Pen Letter to Education Department Highly Critical of Navient Contract

By

Sen. Elizabeth Warren (D-Mass.) is once again firing at the Education Department (ED), this time among a group of Senate Democrats openly criticizing their involvement with Navient Corp.

According to the Huffington Post, Warren and six other Democratic Senators attempted to expose the ED for continuing to do business with a company accused of intentionally cheating active duty military members. Signing the letter alongside Warren were Sens. Sherrod Brown (Ohio), Ed Markey of (Mass.), Dick Durbin (Ill.), Al Franken (Minn.), Mazie Hirono (Hawaii) and Tammy Baldwin of (Wis.).

The Justice Department and the Federal Deposit Insurance Corp. (FDIC) settled a year ago with Navient and Sallie Mae for $139 million over allegations the student loan lender violated the Servicemembers Civil Relief Act.

Education Secretary Arne Duncan said at the time he would evaluate possible sanctions to take against Navient and Sallie Mae. He also said discontinuing their lucrative contract was an option.

However, the ED renewed its deal with Navient to allow the lender to continue handling a great deal of the nation's student loan debt. The group of senators pointed out this decision came while several federal departments and even the White House are currently emphasizing the importance of students being able to graduate college debt-free.

"We are deeply concerned that Navient could have cheated our military families and broke the law, and yet somehow continue to feast off of our borrowers and our taxpayers," the letter read. "The other federal watchdogs have done their jobs, and it is past time for you to do yours."

The ED also apparently wrapped up its review of Navient's alleged borrower violations without dolling out much punishment at all.

"It took the Department of Education just one month after the announcement of a major federal settlement to decide that it should continue to award funds to Navient," the Senators' letter read said. "But after more than a year, the Department of Education cannot determine whether Navient's actions that harmed our military families warrant any punishment at all under its contracts."

© 2024 University Herald, All rights reserved. Do not reproduce without permission.
Join the Discussion
Real Time Analytics