The Obama Administration is going to continue doing business with Navient Corp. despite being accused of intentionally cheating military members on their federal student aid.

Three unnamed sources told the Huffington Post that Navient, a student loan specialist previously owned by Sallie Mae, is getting three more months of business from the Obama Administration. Sallie Mae has been the Education Department's preferred student lender and the company announced a split with Navient amidst criticism for alleged borrower's rights violations.

Prominently among those allegations was that the student lender was intentionally denying military members with benefits given them under the Servicemembers Civil Relief Act (SCRA). Sallie Mae also stood accused of employing questionable practices to incur late fees from borrowers, among other violations.

Sallie Mae paid a $139 settlement with the Justice Department to settle the accusation of denying tens of millions of dollars in federal financial aid to more than 60,000 military members. Earlier this week, President Obama spoke at a convention, telling servicemembers about the benefits they are entitled to, the ones the Justice Department accused the company of denying them.

"It's very disappointing," said Jason Collette, national organizer for Alliance For A Just Society, told the HP of Navient's deal with the Obama Administration. "Until a company loses its federal contracts or a senior executive is punished, these fines are just the cost of doing business."

Education Secretary Arne Duncan said at the settlement announcement news conference that his department will be reviewing Navient's practices in-depth. When asked if Navient could lose its government contract, Duncan said "every option is on the table."

"If the Education Department is really allocating Navient new loans after its history of unlawful practices, it shows that the department isn't prioritizing the safety of borrowers." Chris Hicks, an organizer who leads the Debt-Free Future campaign for Jobs With Justice, told the HP. "Instead, they're prioritizing their contractors."

Read more