AFR and SBPC Send Letter to Navient Demanding Investment in Student Borrowers, not Shareholders
Americans for Financial Reform (AFR) and The Student Borrower Protection Center (SBPC) sent a letter to the Board of Directors of Navient Corporation urging the company’s board to halt dividends and stock buybacks, pause planned compensation for itself and the company’s executives, and focus on investing in customer service infrastructure for the remainder of the coronavirus crisis.
Since spinning off from Sallie Mae in 2014, Navient has spent approximately $4.5 billion on executive pay, board compensation, and returns to the company’s investors. The company’s spending includes paying almost $39 million to President and CEO Jack Remondi through 2019.
Meanwhile, as illustrated in lawsuits spanning the country and tens of thousands of consumer complaints submitted to the Consumer Financial Protection Bureau, Navient has systematically failed to offer student loan borrowers the quality customer service they desperately need. In more stable economic times, these servicing failures were unacceptable and left student loan borrowers to absorb as much as $4 billion in additional costs. Now, in light of the coronavirus pandemic, these breakdowns require immediate action by Navient’s directors.
The letter is part of a broader effort by AFR and the SBPC to combat predatory practices and hold industry accountable for providing critical relief during this economic crisis.