Education Department Lets Student Loan Contractor Off The Hook For Money Owed To Taxpayers -- Again

November 3, 2015
  • Industry News

The U.S. Department of Education is in no rush to collect on an unpaid debt owed by student loan contractor Navient Corp. If only distressed borrowers were so lucky.

For at least the third time this year, the department has pushed back a deadline for Navient to appeal a 2013 ruling mandating that it repay the federal government about $22 million in alleged overpayments it received in the early 2000s.

The Education Department’s inspector general recommended recouping the funds in 2009, as part of the department's crackdown on student loan companies that were improperly profiting off a program Congress had killed years earlier. However, it took department officials four years to concur.

At the start of 2015, the deadline for appeal was March 31, Navient’s securities filings show. The latest extension, granted sometime between July 1 and Sept. 30, pushed the deadline back to Nov. 12, meaning Navient can continue to delay payment.

Read more at The Huffington Post: http://www.huffingtonpost.com/entry/navient-corp-student-loans_5637e796e4b00a4d2e0b95cf