At the request of members of Congress, the Department commissioned an independent audit to evaluate federal loan servicer Navient’s compliance in awarding Servicemembers Civil Relief Act (SCRA) benefits to eligible servicemembers who requested those benefits between June 2009 and May 2014. The audit found that Navient complied in all material respects with applicable SCRA requirements and that isolated incidents of improper denial of benefits had since been retroactively remediated. The audit scope, methodology and findings are detailed in the following report.
In May 2014, the Department of Justice announced a settlement agreement with Navient that addressed violations of the SCRA on federal and private student loans serviced by the company. In connection with the announcement of the settlement agreement, the Secretary of Education announced that Federal Student Aid would review the Department’s servicers’ compliance with the SCRA. The objective of the reviews were to determine whether borrowers of eligible FFEL loans and Direct Loans received the benefit of the 6 percent interest rate cap provided by the SCRA in accordance with applicable statutes, and the Department’s regulations and guidance. The following reports represent the results of FSA’s reviews of its four Title IV servicers’ compliance with the SCRA for federally-held FFEL Program and Direct Loan Program loans they serviced under their Title IV Additional Servicers (TIVAS) contracts.