{"id":21036,"date":"2024-12-13T13:00:06","date_gmt":"2024-12-13T18:00:06","guid":{"rendered":"https:\/\/www.merkley.senate.gov\/?p=21036"},"modified":"2024-12-13T13:00:08","modified_gmt":"2024-12-13T18:00:08","slug":"wyden-merkley-colleagues-call-on-regulators-to-protect-student-borrowers-from-navients-flawed-cancellation-process","status":"publish","type":"post","link":"https:\/\/www.merkley.senate.gov\/es\/wyden-merkley-colleagues-call-on-regulators-to-protect-student-borrowers-from-navients-flawed-cancellation-process\/","title":{"rendered":"Wyden, Merkley, Colleagues Call on Regulators to Protect Student Borrowers from Navient\u2019s Flawed Cancellation Process"},"content":{"rendered":"<p><em>Congressional investigation reveals Navient may be improperly denying borrowers relief from predatory student loans\u00a0<\/em><br><\/p>\n\n\n\n<p><strong><em>Washington DC <\/em><\/strong><strong>\u2014 <\/strong>U.S. Senators Ron Wyden and Jeff Merkley today joined Senate colleagues in sending a letter to federal regulators that revealed the results of their investigation into Navient about its cancellation process for the predatory, for-profit student loans in its portfolio and urging the agencies to ensure the student loan servicer is providing borrowers all relief that they are entitled to.&nbsp;<\/p>\n\n\n\n<p>In its response to an initial letter from Wyden, Merkley and other lawmakers, Navient agreed to cancel all loans that meet criteria allowing borrowers to raise the same claims and defenses against a loan provider that they could raise against the original seller of the good or service.&nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cNavient has admitted it is responsible for canceling \u2018all loans that meet the Holder Rule criteria,\u2019 but the convoluted process the company has set up for defrauded borrowers is flawed and may be improperly denying borrowers relief,\u201d <strong>the lawmakers wrote Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra and Federal Trade Commission (FTC) Chair Lina Khan.<\/strong><\/p>\n<\/blockquote>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cWe urge the CFPB and FTC to investigate this matter and act to ensure that Navient is complying with federal law and providing relief to the defrauded borrowers harmed by its misconduct,\u201d <strong>escribieron los legisladores.<\/strong><\/p>\n<\/blockquote>\n\n\n\n<p>The investigation released today revealed that:<\/p>\n\n\n\n<ol class=\"wp-block-list\" start=\"1\">\n<li>Only a fraction of Navient\u2019s borrowers who attended for-profit colleges have been sent school misconduct discharge applications \u2014 and Navient denies relief to 80% of those who apply.<\/li>\n\n\n\n<li>Navient\u2019s school misconduct discharge application is unnecessarily burdensome and confusing.<\/li>\n\n\n\n<li>Navient\u2019s rationales for denials are opaque and its appeals process is insufficient, making it impossible for borrowers to exercise their rights.<\/li>\n\n\n\n<li>Navient appears to be making incorrect categorical determinations about which school and loan types are eligible for cancellation.<\/li>\n\n\n\n<li>Navient\u2019s misconduct alone provides a basis for loan cancellation\u2014a fact which Navient has repeatedly ignored.<\/li>\n<\/ol>\n\n\n\n<p>The lawmakers pushed Chopra and Khan to take supervisory and enforcement action as appropriate.<\/p>\n\n\n\n<p>The letter was led by U.S. Senator Elizabeth Warren (D-Mass.) and U.S. Representative Madeleine Dean (D-Pa.). In addition to Wyden and Merkley, the letter was signed by U.S. Senators Richard Blumenthal (D-Conn.), Bernie Sanders (I-Vt.), Tina Smith (D-Minn.), Peter Welch (D-Vt.) and U.S. Representatives Alma Adams (D-N.C.), Greg Casar (D-Texas), Dwight Evans (D-Pa.), Sylvia Garcia (D-Texas), Ra\u00fal Grijalva (D-Ariz.), Pramila Jayapal (D-Wash.), Barbara Lee (D-Calif.), Summer Lee (D-Pa.), Betty McCollum (D-Minn.), Jim McGovern (D-Mass.), Seth Moulton (D-Mass.), Alexandria Ocasio-Cortez (D-N.Y.), Delia Ramirez (D-Ill.), Jamie Raskin (D-Md.), Bennie Thompson (D-Miss.), Rashida Tlaib (D-Mich.), Nikema Williams (D-Ga.), and Frederica Wilson (D-Fla.).&nbsp;<\/p>\n\n\n\n<p>El texto completo de la carta es <a href=\"https:\/\/www.warren.senate.gov\/imo\/media\/doc\/warren_letter_to_ftc_and_cfpb_on_navient_investigation.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">aqu\u00ed.<\/a><\/p>\n\n\n\n<p class=\"has-text-align-center\">###<\/p>","protected":false},"excerpt":{"rendered":"<p>Congressional investigation reveals Navient may be improperly denying borrowers relief from predatory student loans\u00a0 Washington, D.C. \u2014 U.S. Senators Ron Wyden and Jeff Merkley today joined Senate colleagues in sending a letter to federal regulators that revealed the results of their investigation into Navient about its cancellation process for the predatory, for-profit student loans in [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":17052,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[24],"tags":[47],"class_list":["post-21036","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-press-releases","tag-protecting-consumers-taxpayers-and-the-economy"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - 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