Watchdog says Education Dept. stonewalls student loan suit

MGN

NEW YORK (AP) - A fight between two federal agencies over a lawsuit could leave student loan borrowers in the lurch.

The Consumer Financial Protection Bureau is suing Navient Solutions, the nation's largest student loan servicer. The CFPB said Navient violated consumer protection laws and in some cases caused students to pay back too much on their student loans. The lawsuit could impact millions of student loan borrowers.

The CFPB claims in court documents that the Education Department is hamstringing its lawsuit by failing to authorize Navient to turn over documents.

The Education Department cites a new interpretation of federal student loan laws as its reason for not helping the CFPB.

Navient's lawyers said that as long as the two agencies are at odds, it will not cooperate with federal regulators.



 
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