Dive Brief:

• The AFL-CIO, an investor in Navient Corp., has asked for a meeting with the student loan company to talk about Navient’s regulatory issues.
• The U.S. Department of Justice accused Navient of purposely overcharging borrowers, including active-duty soldiers, on their loan fees.
• Because of the allegations, the U.S. Department of Education is weighing whether to terminate Navient’s $126 million contract for collecting monthly student loan payments, the Huffington Post reported.

Dive Insight:

The AFL-CIO’s pension plans have more than $560 billion in assets, so as an investor, it can wield considerable influence. But because Navient is part of the Standard & Poor’s 500 Index, it’s doubtful the union would pull its investment. The union told the company in a letter that it was concerned that the regulatory troubles would jeopardize its government contracts. Navient is also under investigation by attorneys general from several states, led by Illinois and Washington, and by the federal Consumer Financial Protection Bureau. Plus, Democratic lawmakers and consumer advocates are criticizing the company.

Besides the servicing contract, Navient has a $190 million contract with the Department of Education for debt collection.