[JURIST] The Consumer Financial Protection Bureau [official website] is suing Navient [corporate website], the largest servicer of US student loans. The CFPB alleged [press release] that Navient “fail[ed] borrowers at every stage of repayment” in a press release on Wednesday. CFPB went on to allege that Navient, among other harms, convinced many students to take out larger loans than necessary, concealed information about payment renewal (leading to fines and interest), and damaged the credit reports of students with disabilities, including veterans. Navient, formerly part of Sallie Mae, services [NYT report] about 12 million students and handles around $300 billion worth of loans. Navient has denied all allegations.

Education funding has led to numerous legal challenges across the US. In September the Kentucky Supreme Court ruled [JURIST report] that the governor could not cut state university budgets. The US District Court for the District of Columbia ruled [JURIST report] in July 2015 in favor of tight regulations pointed at the for-profit college industry. The court ruled that the Education Department has the right to demand that schools show that their graduates are financially dependent enough to repay their student loans.