Sen. Elizabeth Warren (D-Mass.) on Tuesday accused student loan servicing giant Navient of pushing its borrowers to refinance their federal loans into private ones, which would make them ineligible for a loan forgiveness program announced by President Biden, The Hill reported. Under a plan unveiled by the White House last month, individuals making less than $125,000 would qualify for up to $20,000 in forgiveness of federal student loans serviced by the U.S. Department of Education. Private student loans are not eligible for forgiveness by the federal government. Warren, during a Senate Banking, Housing and Urban Affairs Committee hearing, said Navient began persuading borrowers to refinance their loans around the time of the White House’s announcement, in what she characterized as an effort to keep the company’s profits up. Warren, along with Rep. Ayanna Pressley (D-Mass.), sent a letter to Navient President and CEO John Remondi asking for clarification of its business practices. The lawmakers asked Remondi how many borrowers received such solicitations, what information they were provided, and how Navient was ensuring its borrowers “receive the accurate and timely information to secure relief.” Navient said in a statement to The Hill that it made clear to borrowers the potential repercussions of refinancing.
