Teachers union sues student loan servicer Navient

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NEW YORK (AP) — The American Federation of Teachers is filing a lawsuit against Navient, one of the country's largest student loan servicing companies, alleging that it failed to guide borrowers through a critical student loan forgiveness program.

The lawsuit focuses on the Public Service Loan Forgiveness program, which allows borrowers who work 10 years in an eligible public service job to have their loans forgiven.

The program has been plagued with problems as the first borrowers have become eligible. A Department of Education report issued last week found only 96 applications were approved out of 28,000, with most being denied for having the wrong loan type or missing or incomplete information.

Navient is also being sued by several states for failing to service student loans correctly. The company denies all the allegations.

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