Loans ‘Designed to Fail’: States state Navient Preyed on Students

Loans ‘Designed to Fail’: States state Navient Preyed on Students

Ashley Hardin dreamed to be a professional photographer — glamorous shoots, maybe some exotic travel. Therefore in 2006, she enrolled in the Brooks Institute of Photography and borrowed a lot more than $150,000 to cover just exactly what the educational school referred to as a pathway into a business clamoring because of its graduates.

“Brooks had been marketed as the utmost photography that is prestigious in the West Coast,” Ms. Hardin stated. “i desired to master through the most useful of the finest.”

Ms. Hardin failed to recognize that she had applied for high-risk personal loans looking for a low-paying job. But her loan provider, SLM Corporation, better called Sallie Mae, knew all that, federal government lawyers say — and made the loans anyhow.

The student loan giant Navient, which was spun off from Sallie Mae in 2014 and retained nearly all of the company’s loan portfolio, has come under fire for aggressive and sloppy loan collection practices, which led to a set of government lawsuits filed in January in recent months. But those accusations have actually overshadowed wider claims, detailed in 2 state lawsuits filed by the solicitors basic in Illinois and Washington, that Sallie Mae involved in predatory financing, expanding vast amounts of bucks in personal loans to pupils like Ms.

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