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More than 400,000 student loan borrowers will get some debt relief from Navient, due to a $1.85 billion settlement agreement announced yesterday.
Navient was sued by several state attorneys general claiming Navient engaged in unfair practices and made predatory loans to students who were unlikely to be able to pay them back. Navient must fully cancel the remaining balances of private loans borrowed by about 66,000 students, totaling $1.7 billion. Additionally bout 350,000 federal student loan borrowers in long-term forbearance, will receive about $260 each, totaling $95 million in restitution.
The lawsuit also alleges that Navient made private loans to students attending for-profit schools and colleges with low graduation rates, even though it knew that a high percentage of those borrowers would be unable to repay the loans. Those who qualify for relief under the settlement don’t need to take any action but can read here to find out if you qualify.
