Treas. Magaziner to SEC: Student Loan Debt Crisis isn't “Ordinary Business”

February 16, 2018: Rhode Island Treasurer Seth Magaziner yesterday sent a letter to the U.S. Securities and Exchange Commission, in response to Navient Corporation’s (NASDAQ: NAVI) attempt to deny shareholders the chance to vote on his proposal requesting that the company provide investors with information on the measures it is taking related to risks associated with the student loan debt crisis.

“Shareholders have good reason to be concerned about risks associated with the student loan industry,” said Treasurer Magaziner. “Nationally, there are more than 44 million borrowers with an estimated $1.5 trillion in student loan debt, an amount second only to mortgage debt.” 
 
Navient, which is facing lawsuits by four states and the Consumer Financial Protection Bureau, as well as a class-action lawsuit from investors, has appealed to the U.S. Securities and Exchange Commission (SEC) for permission to deny shareholders a chance to vote on the shareholder proposal submitted by Treasurer Magaziner. Navient is claiming that the growing level of unsustainable student loan debt, and the risk the company is taking on, is “ordinary business”.

You can read the entire press release here.