U.S. Cuts Off Student-Loan Collectors for Misleading Debtors
This article is for subscribers only.
The U.S. Education Department, citing “inaccurate representations” to student-loan borrowers, will end debt-collection contracts with Navient Corp. and four other companies.
Representatives of these companies, which pursue students who default on their loans, made misleading statements about programs that help borrowers get back on track, the agency said in a statement late Friday. The companies include Pioneer Credit Recovery, a unit of Wilmington, Delaware-based Navient, which was split off last year from SLM Corp., commonly known as Sallie Mae, the largest U.S. education finance company.