Obama Administration To Reward Student Loan Company Accused Of Cheating Troops

[ForgoTheConsequence]

Source: Huffington Post

The Obama administration plans to reward Navient Corp, the student loan specialist formerly owned by Sallie Mae, with new business some three months after federal prosecutors accused the company of intentionally cheating troops on their federal student loans, according to three sources familiar with the administration's plans.

The move is likely to stoke comparisons to recent multi-billion-dollar settlements reached between big banks and federal authorities over financial crisis-era misdeeds. Banks agreed to pay sizable sums, but public interest groups have criticized the settlements because the banks suffered few business consequences and their executives escaped criminal and civil charges.

"It's very disappointing," said Jason Collette, national organizer for Alliance For A Just Society, a network of state-based advocacy groups. "Until a company loses its federal contracts or a senior executive is punished, these fines are just the cost of doing business."

Read more: http://www.huffingtonpost.com/2014/08/29/obama-navient-student-loans_n_5736570.html

[truedelphi]

1. It should also be pointed out that while the President portrays himself as a champion of

Women's right to make equal pay with men, that Sallie Mae (now Navient) totally slams any customer jobs it can into the Outsourced Pile.

It would be easy enough for Americans of both genders to work those jobs. But by letting Mr Obama on the one hand say he supports women's right to equal pay, and on the other hand, by overlooking how he allows for these tens of thousands of jobs being shlepped to third world nations, he is ensuring that many women DO NOT HAVE JOBS, PERIOD.

And how can any student pay back their loans when even the customer service jobs are now in Bangladesh, or wherever?

Furthermore, due to the technical nature of the type of things that need to be discussed with a lender like Sallie Mae, it is a travesty to have these jobs handled by people who barely speak English properly, let alone have no understanding of such legal notions as forbearance, postponement, interest rates consequences, etc.

[TheNutcracker]

2. Gads, you can't say he's makin it easy!

[ForgoTheConsequence]

3. For those who don't remember.....

Sallie Mae, the giant student lender, and Navient, previously a loan servicing unit of Sallie Mae, have agreed to pay $97 million to settle allegations by federal regulators that military service members were charged excessive interest and fees on student loans.

The Justice Department said on Tuesday that beginning in 2005, the companies failed to cap interest on loans to military personnel at 6 percent — a ceiling they are entitled to as part of the Servicemembers Civil Relief Act. The department also asserted that the companies improperly obtained default judgments against service members.

In a related complaint, the Federal Deposit Insurance Corporation said that the companies improperly advised military members that they had to be deployed to receive benefits under the act, among other requirements that were misrepresented. The F.D.I.C. also said Sallie Mae and Navient applied payments in a way that maximized late fees and did not properly disclose on borrowers’ statements how the fees could be avoided.


http://www.nytimes.com/2014/05/14/your-money/sallie-mae-to-pay-fine-over-loans-to-troops.html?_r=0

[WillyT]

4. K & R !!!

[malthaussen]

5. I do wish he wouldn't do things like this.

What is the man thinking?

-- Mal

[GeorgeGist]

6. But SCOTUS

[QC]

7. HOPETASTIC!!! n/t

[blkmusclmachine]

11. Changelicious!

[frylock]

8. GOTV!

[OnyxCollie]

9. HAHAHAHAHAHAHAHAHAHAHAHAHAHA!A

[wolfie001]

17. You forget the bwa......nt

[Demit]

10. Oh but they THOUGHT about punishing Navient, they really did!

From further in the article:

"Asked then if the Department of Education would cancel Navient's lucrative contract, Duncan said, "Every option is on the table." During the ensuing months, the Education Department considered punishing Navient, according to people familiar with the matter, by excluding it for a year from the group of companies allowed to service American college students' federal loans.

Instead, Duncan's department is expected to announce as early as Friday that it will require more college students to deal with Navient, rather than the department's numerous other loan servicers, according to people familiar with the matter. As a result, more taxpayer funds will flow to Navient...."

[blkmusclmachine]

12. It pays to be part of "THE FAMILY."

[QC]

13. This should at least be good for a lucrative corporate board appointment

for our friend Arne when he at long last leaves his present position, if not a cushy executive appointment.

It's good to be a member of the ruling class, very god indeed!

[Scuba]

14. Not the change I hoped for.

[QC]

15. You just want Rand Paul!!!

[Scuba]

16. Snort!

[wolfie001]

18. Arne Duncan.....vomit......

From Huffie: 'Instead, Duncan's department is expected to announce as early as Friday that it will require more college students to deal with Navient, rather than the department's numerous other loan servicers, according to people familiar with the matter'.
He really is despicable.