sallie mae student loans

new at 5:00, illinois attorney general lisa madigan is suing the largest names in the student loan industry. as mai martinez reports it impacts tens of thousands in illinois. reporter: illinois attorney general lisa madigan is suing

both saying they engaged in aggressive and subprime lending leading to tens of thousands of bad loans in illinois. one of the most a greg guys is that navy cent saddled students with subprime loans designed to fail. reporter: they made billions

off the lots that carried high interest rates and fees and given to students at some of the worst schools including poorly accredited for profit schools. navy incident entered into -- navient entered into agreements so they didn't have

to shoulder the losses. borrowers were left with a lifetime of debt unable to pay. reporter: she adds it's not just students set up to fail. a growing number of loans require cosigners. you see parents and grandparents who are on the

hook, sometimes for difficult loans. reporter: the consumer financial protection bureau announced it is suing navient. officials dispute the allegations and claim they are politically motivated days ahead of the new presidential

administration. any resource for anybody that feels like they have been wronged. right now this is at the beginning. they filed a lawsuit. we know how long the courts can take.

the hope is in the end it will recoup some of the money and forgive some outstanding loans where people might be defaulting. a lot of these allegations, they are going out to the most vulnerable students including disabled.

she said they figured out the people that would fail and giving them loans when they shouldn't have given them in