The Consumer Financial Protection Bureau and two states on Wednesdaysued the nation's largest student loan servicer, Navient, formerly part of Sallie Mae, for allegedly systematic failures in processing loan payments and failing to enroll borrowers in less expensive repayment plans.

The CFPB alleged that Navient added $4 billion in interest charges to the principal balances of borrowers by enrolling borrowers in multiple, consecutive forbearance plans instead of in cheaper, alternative repayment plans.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.