Magaziner Blasts Navient Corp. on Student Loan Debt Crisis
Saturday, February 17, 2018
Rhode Island Treasurer Seth Magaziner sent a letter to the U.S. Securities and Exchange Commission blasting Navient Corporation’s effort to deny shareholders the chance to vote on his proposal requesting that the company provide investors with information on the measures it is taking related to risks associated with the student loan debt crisis.
Read the Letter Here
"Shareholders have good reason to be concerned about risks associated with the student loan industry. Nationally, there are more than 44 million borrowers with an estimated $1.5 trillion in student loan debt, an amount second only to mortgage debt,” said Magaziner.
The letter comes after Navient appealed to the U.S. Securities and Exchange Commission (SEC) for permission to deny shareholders a chance to vote on the shareholder proposal.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST"This is a crisis for millions of Americans, not 'ordinary business'. In Rhode Island, 64% of graduates carry an average of $32,920 of student loan debt. As long-term investors in Navient, it is our duty to members to ensure that the company is adequately responding to this crisis," said Magaziner.
Student Loan Debt Crisis
The U.S. Department of Education reports that the number of borrowers not making payments on their federal student loans within three years of leaving college has risen to 11.5%.
Navient Corporation manages more than $300 billion in federal and private student loans for approximately 12 million borrowers. Over a million borrowers with Direct Loans at Navient have defaulted on their student loans.
The CFPB received 6,274 complaints about Navient in the period from September 1, 2016 - August 31, 2017
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