Illinois Attorney General Lisa Madigan is suing the country’s largest student loan provider for consumer fraud.
The attorney general alleges that Sallie Mae and its spinoff company Navient misled Illinois borrowers for profit.
Her suit claims that the federal student loan provider offered risky subprime loans, inadequate repayment options and engaged in deceptive debt collection practices.
Madigan says her office investigated the company after receiving numerous complaints.
“We uncovered rampant student loan abuses and finding that Sallie Mae and Navient had defrauded students, really at each step of the way: originating, servicing and collecting on loans.”
Navient says the allegations are unfounded and politically motivated.
