>> Read more trending stories
The Consumer Financial Protection Bureau brought the suit on behalf of the government saying, "At every stage of repayment, Navient chose to shortcut and deceive consumers to save on operating costs."
The complaints come from as far back as 2010, and say that Navient made its customers pay more than they had to and misallocated payments when there were multiple loans. There are also claims that Navient said that borrowers defaulted when they didn't, damaging credit scores, CNN Money reported.
Navient said in a statement that the allegations are false and that the timing of the lawsuit is politically motivated, rejecting an offer to settle out of court or be sued.
Navient broke off from Sallie Mae in 2014 and handles more than 12 million student loan accounts. It is one of nine that has agreements with the government to service federal student loans.
Click here to read more about the suit and the allegations facing Navient.
About the Author