The American Federation of Teachers filed a lawsuit Wednesday against Navient, alleging that it failed to guide eligible borrowers through a critical student loan forgiveness program. Navient has major operations in Fishers.
The expansion is the second for the student loan giant in Indianapolis in less than two years.
Student loan giant Navient Corp., which has major operations in Fishers, has suffered a pair of courtroom defeats in its attempt to block government lawsuits alleging borrowers had been mistreated.
Navient Corp. has been sued by a U.S. regulator over allegations that the student loan giant failed to properly service private and federal loans. Navient has major operations in Indiana.
The Fishers-based not-for-profit announced Wednesday that it will transfer ownership of two affiliates—United Student Aid Funds and Northwest Education Loan Association—to Madison, Wisconsin-based Great Lakes Higher Education Corp. on Jan. 1.
Navient Corp., which employs 2,300 in its Fishers, Indianapolis and Muncie offices, is in the running for a big contract with the U.S. Department of Education even as the student-loan-servicing company faces criticism after admitting it overcharged military service members by millions of dollars.
Student lender Sallie Mae has reached a $60 million settlement with the Justice Department to resolve allegations that it charged members of the military excessive interest rates on their student loans, the federal government announced Tuesday.
The student lender wants to separate its education loan management and consumer bank businesses into two publicly traded entities. The firm is a major employer in Indiana, with more than 2,600 employees at offices in Indianapolis, Fishers and Muncie.
Investors have dumped the already-depressed shares of ITT Educational Services Inc. after the operator of for-profit colleges shelled out $46 million for bad private student loans it had backed to help students pay the portion of its pricey tuition that federal loans won’t cover. With fewer ITT graduates able to find jobs, the default rates on these loans has spiked.
After accepting the post of Purdue University president, Gov. Mitch Daniels finds himself at the heart of the debate over the value of a traditional college degree versus its cost and the needs of employers who simply want skilled workers.
Student-loan giant Sallie Mae will consolidate operations in Indiana as part of a company-wide restructuring, creating about 350 jobs at its existing facilities in Fishers and Muncie.
Sallie Mae says a new law that cuts banks out of the federal student-loan business is costing 2,500 workers their jobs in
Florida and Texas, but the cuts won’t hit Indiana in 2010.
The legislation, piggybacked to the health care bill that passed Congress Sunday night, could also mean major job
losses for Sallie Mae, which employs about 2,400 people in Indiana, including 1,700 in Fishers.
The plan to nationalize the federal student loan program threatens to force Sallie Mae
to hack its network of 26 offices down to five. Yet the company’s Indiana operations have several advantages that could
help weather the cuts.