Navient has a responsibility to its customers, shareholders, and employees to defend itself -- publicly and in court -- against this unsubstantiated, unjustified and politically driven action, the company said. Multistate Investigation Illinois Attorney General Lisa Madigan, who led a multistate investigation into Navient, said Wednesday that her office has also sued Navient and its subsidiaries for widespread abuses across all aspects of its business, including putting customers in subprime loans the company knew were going to fail. The suit calls for restitution, the return of unlawful profits, civil penalties and canceling or revising agreements with Illinois consumers. Navient handles a portfolio of about $300 billion in student loans and acts as a servicer for the Department of Education. In 2014, the company created a $60 million fund to compensate borrowers after the Department of Justice accused it of violating the rights of military members by failing to give them an interest-rate cap they were due. Incredibly Complicated Sallie Mae announced in 2013 it was splitting into two companies, with Navient taking the loan-servicing portion of the public company. Sallie Mae still makes private student loans, which are a small portion of the overall $1.4 trillion market, dominated by government-originated and -backed loans.
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