Navient Corp. was sold by Canyon Capital Advisors LLC $52.32m in shares-July 24
Navient Corporation specializes in student credit management. The group also offers debt collection services, support services and administrative services.
Revenues break down by activity as follows:
- student loans guaranteed by the federal government (62%);
- private student loans (375%);
- other (0.5%).
Obama Administration To Reward Student Loan Company Accused Of Cheating Troops
Navient Had Come Under Fire for Allegations It Overcharged Military Members, Hit Borrowers With Excessive Fees
The U.S. Education Department has extended a major student-loan contract with a former Sallie Mae division, despite pressure from student, union and liberal groups to end the arrangement, an official familiar with the matter said Tuesday.
Navient Corp. 's work for the government, worth $106 million last year, had come under fire for allegations it overcharged military members and hit borrowers with excessive fees.
The company was spun off as a separate corporate entity from Sallie Mae earlier this year.
Its contract was set to expire this month.
Critics had urged the Education Department to avoid renewing the contract, pointing to a $97 million settlement the companies reached last month with the Justice Department and Federal Deposit Insurance Corp over the allegations of overcharging.
Under the pact, the companies didn't admit or deny the allegations, but Navient CEO John Remondi apologized for some "processing errors."
Union groups including the AFL-CIO and National Education Association, along with several student organizations, last month started a petition urging Education Secretary Arne Duncan to cut the company off.
But the Education Department concluded that it would be "irresponsible to cause interruptions for borrowers" while the government reviews the company's performance, the Education Department official said.
"If we determine it is appropriate to end a contract with a servicer, we would need a transition period to smoothly transfer loans to another company," the official said.
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