In a surprise move, Senator Elizabeth Warren, a champion of student debt cancellation, invited the CEO of Navient Jack Nemondi to an upcoming hearing about student loans. Navient is the largest servicer of student loans having signed contracts with the Education Department worth hundreds of millions. Why would Senator Warren invite Navient? This is a company that would not benefit from student debt cancellation. Is Navient lobbying against the debt cancellation? Is Senator Warren trying to point her finger gently at those who are standing in the way of relieving 45 million students of their burden?
Navient is a listed company on NASDAQ. The top five institutional investors hold approximately $700m in investment in the company, which has a market capitalization of $2.640b. They are: Blackrock, Inc., Vanguard Group, Inc., Dimensional Fund Advisers LP, Lsv Asset Management, and FMR, LLC.
Mutual Funds like Vanguard, iShares, and others have a large stake in the company totaling approximately $355m worth of investment. Why is this important? Read on.
Therefore, we must employ a different strategy by applying pressure against those who are quietly lobbying against student debt cancellation.
PRESIDENT BIDEN IS NOT BUDGING
President Joe Biden has yet to make student debt cancellation a centerpiece of his policy. But when you consider that 45 million voters are indebted because of runaway expensive high education, and if you add another 60 to 70% representing their parents who are watching painfully their children unable to buy a home or marry, then student debt affects some 75 million American voters.
With such impactful numbers, the legacy of Biden depends on student debt cancellation. Yet, Biden does not seem interested as of yet. It behooves the President to forget his loyalties to corporate America and the investors backing them and start considering what legacy he wants to leave behind as the combined economical impact of student loans changes the very societal fabric of this country to the worst case scenario.
There are no excuses President Biden can provide for this oversight should he not cancel student loans and establish a new policy for our youth to have good high education and a normal life simultaneously. This Frankenstein capitalism must yield to more sensible and balanced policies. If the Europeans can do it, so can we.
Therefore, we must employ a different strategy by applying pressure against those who are quietly lobbying against student debt cancellation. Companies like Navient, which incidentally students lodged the highest number of complaints against, AES/PHEAA, Nelnet, Great Lakes, ACS Education Services, and ECMC Group, Inc.
Navient and others are working the phones making promises that should White House staff stand firm against student debt relief, they would have, in few years, a future in the private sector
IS NAVIENT LOBBYING THE WHITE HOUSE MAKING PROMISES TO ITS STAFF?
Maybe organizations calling for debt cancellation should concentrate their efforts on pointing the finger, as Senator Warren did, on those culprits lobbying Congress and the Biden Administration against the relief students are looking for.
Navient and others are working the phones making promises that should White House staff stand firm against student debt relief, they would have, in few years, a future in the private sector with lots of blood and tears money to satisfy their greed. If you think this is surely not happening, you need a wake-up call.
Every single person who worked in the White House during the Obama years is now a millionaire. Just read the article both
Should the public, through grass roots campaigns like Student Debt Collective and others start a campaign against the investors of the servicers to drop their holdings? If Biden refuses to budge, students must have Plan B in place.