Magaziner asks Navient Corp. to review risky student loans

PROVIDENCE – Seth Magaziner, Rhode Island’s general treasurer, has submitted a shareholder proposal with Navient Corp., asking the company to review risky student loans.
The company, which spun out of Sallie Mae in 2014, holds student loan debt, which Magaziner says is at-risk.
“The student loan crisis is threatening the financial security of millions of Americans,” he said in prepared remarks. “It is our duty as shareholders to ensure that the companies we invest in have a credible plan for how to address growing levels of debt and delinquency.”
Magaziner’s office estimates about 8.1 million federal student loan borrowers are currently in default, with one of every five student loan borrowers either delinquent or in default, according to a press release. The Institute for College Access & Success, a nonprofit, estimates the average debt for 64 percent of college graduates with student debt totals $32,920.
In his letter, Magaziner urges the company’s board of directors to look at a number of contingencies to ensure it would be able to adequately service borrowers in the event of an economic shock. The national student debt totals more than $1.3 trillion, according to Bloomberg estimates.

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