Navient Will Cancel $1.7 Billion In Student Loans After Reaching A Settlement With States On Predatory Student Loan Practices
Socialites, get into this! Navient, one of the nation’s largest student loan servicers, will provide relief totaling $1.85 billion to resolve allegations of unfair, deceptive student loan servicing practices and abuses in student loans.
The settlement joined by a coalition of 39 attorneys general, resolves allegations that Navient guided borrowers into expensive long-term forbearances rather than telling them about more affordable plans. The settlement includes $1.7 billion in debt cancellation and $95 million in restitution.
“Navient repeatedly and deliberately put profits ahead of its borrowers – it engaged in deceptive and abusive practices, targeted students who it knew would struggle to pay loans back, and placed an unfair burden on people trying to improve their lives through education,” says Pennsylvania Attorney General Josh Shapiro in a statement. “Today’s settlement corrects Navient’s past behavior, provides much needed relief to Pennsylvania borrowers, and puts in place safeguards to ensure this company never preys on student loan borrowers again.”
According to CNBC, “the student loan cancellation will impact approximately 66,000 private student loan borrowers. Eligible private student loan borrowers should receive a notice from Navient by July 2022, along with refunds of any payments made on the canceled private loans after June 30, 2021.”
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