May 12, 2014

HIGHER EDUCATION BUBBLE UPDATE, CULTURE OF CORRUPTION EDITION: Sallie Mae Spin-Off Expects $103 Million Hit From Probes. “Navient, the loan-servicing company formerly known as Sallie Mae, disclosed to investors Friday that it expects to pay an additional $103 million to settle two federal investigations, on top of the $70 million it already set aside last year for that purpose. The company is facing investigations from the Federal Deposit Insurance Corporation, the Department of Justice, and other federal and state agencies over how it managed and processed the payments of student loan borrowers, including active-duty servicemembers.”