Consumer Financial Protection Bureau v. Navient Corporation, et al.

Analysis Group was retained by the Consumer Financial Protection Bureau (CFPB), the plaintiff in a long-running suit filed against Navient, formerly known as Sallie Mae. The CFPB alleged that Navient, which held a US Department of Education contract to service more than 6 million federal student loan accounts, had engaged in unfair and abusive acts and practices against borrowers who had reasonably relied on Navient to act in their best interests. Among other allegations, the CFPB claimed that Navient had steered borrowers who qualified for income-driven repayment plans into costlier forbearance options; misallocated payments, resulting in late fees, interest accrual, and negative credit reporting; and misled borrowers about its requirements to release a loan’s cosigner. The CFPB sought restitution to harmed borrowers.

An Analysis Group team led by Principal Laura O’Laughlin, and including Vice Presidents Alix Duhaime-Ross and Anne Catherine Faye and Manager Anthony Nasr, supported testifying expert Tülin Erdem, who fielded a survey assessing Navient’s communications with borrowers regarding income-driven repayment plans. The team also supported Shannon Millard, another expert retained by the CFPB.

In a settlement filed in the US District Court for the Middle District of Pennsylvania, Navient agreed to pay a civil penalty and fund $100 million in restitution to harmed student loan borrowers. Under the settlement, Navient is also banned from servicing certain federal student loans in the future.