WASHINGTON D.C. — Representatives Dean, Pressley, Thompson, Velázquez, Jesús G. “Chuy” García, Maloney, Hayes, Lynch, and Carson, urged CEO, John F. Remondi, of the Navient Corporation to reconsider current stock buybacks plans. This follows a disturbing pattern of behavior since Navient spun off from Sallie Mae back in 2014 – spending $3.2 billion in stock buybacks and $1.2 billion in dividend payments.
In the midst of this unprecedented public health and economic crisis, Navient Corporation is conducting aggressive stock buybacks that harm workers and enrich shareholders, while failing to meet the needs of student borrowers. Students struggle to reach Navient customer support and those with other loans like private loans face further hardship as their loan payments are not currently suspended.
"Issues with student loans predate this pandemic, but COVID-19 and its impact on the economy have exacerbated this crisis and amplified pressure on student borrowers,” Congresswoman Dean said. “Student borrowers must be able to reach Navient support when attempting to seek relief or make changes to their loans - yet Navient has shown a disregard for student borrowers while putting more money in the pockets of their corporate executives."
"In these unprecedented times, it’s critical that we center the needs of struggling student loan borrowers, workers, and families, not CEOs and corporate shareholders," Congresswoman Pressley said. “With millions of student loan borrowers already struggling to make ends meet amid this economic crisis, Navient’s shameful decision to spend hundreds of millions of dollars to further enrich its executives and shareholders is simply unacceptable. As we continue our fight to cancel student loan debt and finally end our nation’s $1.6 trillion student debt crisis, we must ensure that those profiting off this crisis are being held to account."
The letter requested answers to the following questions:
- Given the current health and economic crisis – and the burdens shouldered by student loan borrowers – will you join other corporations in halting future stock buybacks, including those already scheduled for 2020?
- Navient’s board and CEO are awarded annually with large compensation packages. Will you commit to halt increases in executive and board compensation and to reallocate funds to helping student loan borrowers that rely on your services?
- Will you commit to reallocating capital investments in order to improve customer support and frontline systems to better support struggling student loan borrowers during this economic downturn?
- In addition to providing direct support to student loan borrowers, will your company commit to dedicating financial resources to protect the health and safety of employees working in field offices across the country – including your offices in Pennsylvania – as states begin to re-open their economies and wind down stay at home orders?"
The letter urged a detailed response from Navient Corporation by July 14, 2020.
[[{"fid":"6326","view_mode":"full","fields":{"format":"full","alignment":"","field_file_image_alt_text[und][0][value]":"NavientLetter1"},"link_text":null,"type":"media","field_deltas":{"1":{"format":"full","alignment":"","field_file_image_alt_text[und][0][value]":"NavientLetter1"}},"attributes":{"alt":"NavientLetter1","class":"media-element file-full","data-delta":"1"}}]]
[[{"fid":"6334","view_mode":"full","fields":{"format":"full","alignment":"","field_file_image_alt_text[und][0][value]":"NavientLetter2"},"link_text":null,"type":"media","field_deltas":{"2":{"format":"full","alignment":"","field_file_image_alt_text[und][0][value]":"NavientLetter2"}},"attributes":{"alt":"NavientLetter2","class":"media-element file-full","data-delta":"2"}}]]
