Pennsylvania AG sues student loan company Navient

HARRISBURG, Pa. (WHTM) – Pennsylvania’s state attorney general’s office has sued Navient, accusing the biggest U.S. student loan company of deceptive practices and predatory conduct.

Attorney General Josh Shapiro said the lawsuit, filed Thursday in U.S. District Court, could impact hundreds of thousands of Pennsylvanians, including anyone who received private student loans from Sallie Mae, one of Navient’s predecessors.

“Navient repeatedly engaged in misleading practices meant to boost their profits at the expense of Pennsylvania students,” Shapiro said in a statement. “They crossed the line in pursuit of profit.”

The lawsuit says students attending colleges with low graduation rates were given unfair loan terms, despite knowing that many of them would not be able to repay.

Navient also steered student borrowers into forbearance plans that added interest to the loan principal. From 2010 to 2015, the company added up to $4 billion in interest charges to the principal balances of borrowers, Shapiro said.

The Consumer Financial Protection Bureau also sued Navient over loan practices earlier this year. Shapiro said as of last month, Pennsylvania residents had filed 1,059 complaints against the company with the CFPB.

Students may file complaints on the attorney general’s website, by calling 800-441-2555, or emailing

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