A suit brought by the Consumer Financial Protection Bureau claims that Navient saved itself money by steering borrowers into costly repayment strategies that added billions in interest to their balances. But as Stacy Cowley and Jessica Silver-Greenberg reported in The Times on Monday, states’ lawsuits are especially damning with respect to Sallie Mae — the company that spun off Navient in 2014.

The Illinois and Washington attorneys general argue that Sallie Mae engaged in predatory lending, saddling people with private subprime loans that the company knew in advance were likely to fail because borrowers would not be able to repay them. The two attorneys general — part of an investigative coalition of 29 states — argue that borrowers deserve to have these tainted private loans forgiven.

The scenario outlined in the court documents bears a frightening resemblance to the subprime mortgage crisis of a decade ago — when mortgage companies caused millions of borrowers to lose their homes by steering them into risky, high-cost mortgages they could never hope to repay.

The Illinois and Washington lawsuits argue that Sallie Mae used subprime private loans to build relationships with exploitative schools that then helped the company make more federal loans to their students. Those loans were the jackpot for the company, the lawsuit argues, because they were guaranteed by the government, which steps in to reimburse the lender when a borrower defaults.