The state of New Jersey sued Navient on Tuesday, alleging that the student loan servicing company forced borrowers to pay and owe more money than necessary through misleading and deceptive practices, The Hill reported. In a lawsuit filed by New Jersey’s attorney general and division of consumer affairs, the state accused Navient of steering borrowers into loan forbearance — a temporary pause in payments due on a loan — and away from income-driven repayment plans, which typically extend the term and reduce the monthly payment owed. New Jersey also says that Navient failed to inform borrowers about their requirement to recertify that they are eligible for an income-driven repayment plan and gave them inaccurate information about balances due and cosigner obligations. Navient is responsible for collecting and processing student loan payments from more than 400,000 borrowers who received federal loans from the Department of Education. The company has faced a flurry of lawsuits from the Consumer Financial Protection Bureau (CFPB) and state attorneys general alleging similar mistreatment of borrowers.
