Durbin Joins Warren To Urge Navient To Reform Process To Cancel Student Loans Of Fraudulent Colleges
WASHINGTON – U.S. Senate Majority Whip Dick Durbin (D-IL) today joined U.S. Senator Elizabeth Warren (D-MA), U.S. Representatives Madeleine Dean (D-PA-04), Danny Davis (D-IL-07), Delia Ramirez (D-IL-03), and 30 lawmakers in sending a letter urging student loan servicer Navient to reform its flawed process to cancel the private student loans of borrowers who attended fraudulent, for-profit colleges. The lawmakers argued that ??under the Federal Trade Commission (FTC) Holder Rule and due to Navient’s misconduct, the company is liable for these predatory loans—and the school misconduct discharge application it has set up to relieve them is opaque and insufficient. On April 17, 2024, Durbin joined Warren and seven other Senators in writing to Navient, urging the servicer to cancel private student loans pushed onto borrowers attending fraudulent, for-profit colleges that the servicer is responsible for. In its response, dated May 8, 2024, Navient claimed that it i