Senator Files Resolution to Investigate Student Loan Market in Puerto Rico

A resolution that seeks to investigate the student loan market in Puerto Rico was filed in the Puerto Rico Senate by the senator of the New Progressive Party (PNP), Keren Riquelme.

The legislator, as indicated through a press release, submitted the measure after learning that the Department of Justice sued the company Navient Corporation for providing “abusive” loans to students.

“News that the Department of Justice has sued Navient Corporation for allegedly providing student loans with unfair terms raises a flag. We understand that it is meritorious to initiate an investigation into the causes that led to this lawsuit, and the behavior of this industry in Puerto Rico,” Riquelme commented.

Justice’s lawsuit comes as a result of an agreement reached by the company Navient and 40 states of the union, for a whopping $1.85 billion, due to serious irregularities on the criteria and terms imposed on students in loans for post-secondary studies.

“The lawsuit highlights that this company has promoted high-risk and high-interest loans, in many cases, knowing that these instruments were not fulfilled. This is to the detriment of our post-secondary students, who understand the future of Puerto Rico. For this reason, an investigation into this matter is merited,” added Riquelme.

In 2021, Navient notified that it would stop providing student loans due to the avalanche of complaints and civil lawsuits in multiple states of the union.

A student loan is described as money that an accredited institution lends to individuals to defray the expenses associated with a post-secondary education, including payment of academic credits, housing, transportation, and related electrical equipment.