Alphabet Soup: A Look Into The Abbreviated World of Student Loans
Harvesters,
Over the past several months, I have researched the post-secondary education industry extensively. During this time, I acquired a voracious appetite for the truth - the answer that could explain the overflowing moral hazard that had affected the entire sector. Navient Corp. is the heart of the student body - pumping expensive capital through the veins of the public/private university system.
Despite being a service company, Navient makes the majority of its profits from charging late fees and collecting defaulted loans from those who were preyed upon during the Great Recession. Last year, the Consumer Financial Protection Bureau found evidence of the student loan servicer overcharging deployed servicemembers - charging them higher interest rates and other illegal fees. After a slap on the wrist from the Department of Education, they were approved for another federal contract.
Fortunately, the regulatory environment for consumer protections is changing. The CFPB is currently investigating the company for a multitude of reasons, along with several Attorney Generals from across the country. Due to the research described in this paper, I am fully convinced that these groups will find wrongdoing. Post-investigation, the gaping vulnerabilities inside Navient's inept business structure will be exploited and exacerbated.
-Taylor
Please e-mail taylor@pinecapitalpartners.com for any inquiries.
Over the past several months, I have researched the post-secondary education industry extensively. During this time, I acquired a voracious appetite for the truth - the answer that could explain the overflowing moral hazard that had affected the entire sector. Navient Corp. is the heart of the student body - pumping expensive capital through the veins of the public/private university system.
Despite being a service company, Navient makes the majority of its profits from charging late fees and collecting defaulted loans from those who were preyed upon during the Great Recession. Last year, the Consumer Financial Protection Bureau found evidence of the student loan servicer overcharging deployed servicemembers - charging them higher interest rates and other illegal fees. After a slap on the wrist from the Department of Education, they were approved for another federal contract.
Fortunately, the regulatory environment for consumer protections is changing. The CFPB is currently investigating the company for a multitude of reasons, along with several Attorney Generals from across the country. Due to the research described in this paper, I am fully convinced that these groups will find wrongdoing. Post-investigation, the gaping vulnerabilities inside Navient's inept business structure will be exploited and exacerbated.
-Taylor
Please e-mail taylor@pinecapitalpartners.com for any inquiries.
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