Attorney General Becerra Announces Lawsuit Against Major Student Loan Servicer

I want to thank everyone for joining us
this glorious Thursday afternoon here in Los Angeles he especially here at Los
Angeles trade tech college I want to thank all the folks at LA trade tech for
allowing us to be here we I was fortunate for some 20 years to represent
LA trade tech in Congress and I appreciate it very much the work that
they do to get the next generation of leaders ready in our country and so we
thank them once again for extending their the services and the facilities
here at Le trade tech so we could press another very important point I am also
pleased to introduce in a few short minutes Natalie Natali excuse me Natalia
Abrams and I I’m accustomed sometimes saying Natalie forgive me Natalia
because my daughter’s name is Natalia and she’s often referred to as Natalie
but Natalia Abrams who is with the student debt crisis organization and she
is the executive director and chief perhaps is more important than I am
because she can give you the real details of why we are here we have many
members of our legal team who are here whom I will turn to if there are any
questions that pertain to the action we’re about to announce today and if
they need to be asked to speak I will introduce them at that time but I do
know that several of them are here I want to acknowledge Nick Akers who is
not here with us who is the senior assistant attorney general Barney
Gandhari who is here with us who is a supervising Deputy Attorney General Mike
Ellis often who I don’t believe is yet here but should be joining us later he’s
a supervising Deputy Attorney General Rachel food man who is with us she’s a
Deputy Attorney General and Eleanor Blum who is with us here and she’s one of my
special assistants dealing with consumer affairs and some of the issues that were
going to discuss today so just a few weeks ago and I’m the
proud father of one of those graduates of thousands of students graduated from
colleges from throughout the country here at La trade Tech and throughout
California and certainly throughout the country they not only did the work to
get their college degree but they’re now ready to start their careers and we
applaud them for that our graduates did everything that we could expect of them
they worked hard in school they got that diploma and they made it a very
important investment in their future for many in fact for more than half of all
graduates from California’s colleges and universities that meant taking out
student loans that they will soon have to start repaying in order to have
acquired that degree these students played by the rules and now as they
prepare to repay those loans are expected to play by the rules again so
should the very loan servicers of those loan of those loans play by the rules at
the California Department of Justice we’ve worked hard to protect our
students from unscrupulous businesses that would steal their American dream
whether it’s a for-profit college or a federal government contractor no
business gets to cheat our students and get away with it
this week the state of California will be filing a lawsuit against navient
corporation and its subsidiaries for misconduct in student loan servicing and
in debt collection we are announcing this lawsuit against
the nation’s largest student loan servicer for systematically and
illegally failing our borrowers at all stages of the repayment process navient
which many of you remember more by the former name Sallie Mae services and
collects on approximately 12 million borrowers private and federal student
loans including some one and a half million borrowers here in California in
our complaint we will allege that navien and its subsidiaries pioneer and general
revenue Corporation misled students on some very critical information from
their repayment options to collection fees to the rights of borrowers who have
since become disabled navient exploited every family’s dream of witnessing their
child graduate from college there alone servicing abuses at navient have come
compounded the misery that parents and these very students who sacrificed and
paid for their college education are now experiencing the federal Consumer
Financial Protection Bureau has received nearly 22,000 complaints regarding
navien in fact complaints about navient account for nearly half of all the
student loan complaints that the Consumer Financial Protection Bureau
receives Naviance practices aren’t just wrong they are against the law
specifically California’s unfair competition and false advertising laws
and navient is contributing to our nation’s student loan debt crisis
nationwide more than 1 point four trillion dollars not billion
one point four trillion dollars in federal student loan debt remains
outstanding here in California around a hundred and twenty three billion dollars
in student loan debt more than one in every four Californians
who is delinquent or in default on a loan repayment is facing these
consequences that were created in many ways by navien poor Loan Servicing is at
the core of the problem for so many of these students who find themselves
delinquent or in default Californians who believe they have been victims of
navient misconduct should file a complaint with our offices at the
Department of Justice our website is behalf of California’s
college students nor will it be the last just this month we secured sixty-seven
million dollars in debt relief for former students of the now-defunct
Corinthian Colleges a predatory institution that shut down because of
our offices efforts and we are currently litigating against another for-profit
college Ashford University and its parent company Bridgepoint education
over illegal marketing and debt collection practices we’ve also taken
education federal Department of Education SEC
pterri Betsy DeVos to court for failing to process the debt relief claims of
Corinthian students who took out federal loans I once again call upon secretary
DeVos to do the right thing for these students and we will continue to fight
to protect the gainful employment rule and the borrower defense rule at the
federal level these are federal regulations that hold for-profit
colleges accountable and they protect students who have been defrauded know
this where the federal government has dropped the ball on protecting our
hard-working students California will pick it up we won’t fight stop fighting
to protect America’s college students their families or the American Dream
with that I’d like to now turn to Natalia Abrams executive director of
student debt crisis Natalia thank you everyone as Attorney General Viserys
said my name is Natalia Abrams I’m the executive director of student debt
crisis I’m also an avid borrower and a lifelong California resident and on
behalf of our almost million supporters nationwide we want to thank Attorney
General Becerra for going after one of the worst bad actors in the student loan
game novena is one of the most complained about companies out there and
while we are seeing federal regulations rolled back and consumer protections for
student loans a race we are so grateful to see California doing its job to
protect the almost 4 million I’m sorry more than 4 million student
loan borrowers here in California that’s perfectly fine we have 45 million
student loan borrowers nationwide thank you so much and they are suffering with
lack of the ability to achieve the American dream their
student loan that makes it so they are unable to purchase homes purchase cars
participate in general consumer products and it’s with these type of lawsuits
that we are sending a positive message to student loan borrowers that lawmakers
are in fact on their side and they are listening I’ve talked with borrowers on
the phone and via email for over eight years now and I mean most of the
complaints I hear about our navient it’s usually the people calling us asking for
help and when they complain they are complaining about the fact that they are
not told about the right repayment program in fact we did a survey with our
supporters and over 60% of the time these loan servicers specifically
navient don’t tell borrowers about repayment programs they don’t tell
borrowers that they could qualify for public service loan forgiveness or the
correct loan to be in we’ve actually had to result to teaching educational
seminars about these repayment programs because the loan servicers do not do it
themselves no federal loan borrowers should ever be in default the federal
government has set up plenty of repayment programs for federal student
loan borrowers but it is the fault of the student loan servicers that they are
not getting into the correct plans I just want to finish with the fact that
these unlawful actions they’re more than paperwork errors and communication
errors this companies negligence has cost Californians millions of dollars
and it’s harmful venerable borrowers with permanent
disabilities and they’ve lest left us that borrowers to pick up the pieces
it’s time we’ve done some do something about it and we are so grateful to
Attorney General Becerra for doing something thank you
taya thank you very much can I just reinforce as and I’ll say a
couple words in Spanish again more than half of students who go to college many
of the students who are here at La trade tech must borrow money in order to pay
their two and there are other costs in order to
finish their studies to get their degree and in California one in every four of
those students finds himself or herself in delinquency or default on those
student loans and as Natalia just said and I as well oftentimes those students
would not be in delinquency or default if they were only being provided the
correct information and steered to the right programs to help them do what they
like to do which is cover the costs of their education that’s why this action
that we intend to file is so important in Spanish oh and on UNC ahmo’s boy I
don’t see em escape esta pasando knob you honey
I say impossible okay oh yes Thomason uncie Ando que estamos preparados de
tomar una accion contra una compañía que se llaman navien que para muchos de
nuestros hijos hehas irresponsible por el proceso necesario para poder a pagar
UN pressed amo que nuestros hijos an sacado para poder assistir los estudios
universitas Navi NL responsible pour collect are los pavo’s been darle a
nuestros hijos la información que necesitan saber en Qualls programme’s
tiene que participar en para poder Pagar bien suppress ahmo’s in La Vie en si
esto pork Milanese de estudiantes por toda la nación de Sephora nada mint a
tenemos evidential de que navien hecho todo esto vo londo la ley y abuse on dos
de los estudiantes y las familias claro los padres que ayuda an Pagar los gastos
universitarios y costos UN pressed amo por eso ston
importante saber que vamos a tratar de defender los derechos de nuestros
próximo leaders de este país que se do Karen o trataron de do car pero que
tuvieran Kasich are pressed ahmo’s para pagar por ESO SI studios no es justo que
alguien que trabaja be enduro key so todos la manera recta on en quaint rock
a una corporation está buscando de estos estudiantes y CA y haciendo vida
impossible porque cuesta mucho el rey Pagar lows press tamos y hacer una
manera case illegal diamond ando más de lo que es necesario que estos
estudiantes pagan por ESO estamos anuncio you see ando estamos preparado
de tomar accion en contra esta compañía nav en que trata con los pres tamos de
vionnet’s de nuestros hijos hehas chay-ara Sestito a nuestras
universidades más importantes es una demanded illegal okay estamos preparado
de entregar thank you thank you all very much

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