Navient, one of the largest Agreement reached for $1.86 billion With a coalition of 39 state attorneys general on Thursday. In addition to canceling $1.7 billion in private student loans for about 66,000 borrowers, Navient agreed to pay $95 million to borrowers who were improperly placed in some form of long-term forbearance.Companies serving the US by 2021,
Although Navient itself is not a lender, it manages the student loan repayment process on behalf of the US government. However, Navient decided to end its participation in the federal student loan service at the end of 2021. During that tenure Navient was accused of engaging in abusive and deceptive practices, which the company allegedly knew would struggle targeting students.,
This agreement comes when federal student loan repayments are halted due to the pandemic –Last month prompted another moratorium extension. Federal student loans are on hold until May 1. In addition, the US Department of Education recently pushed for expanding its Public Service Loan Forgiveness program, which would bring extended relief to more than 500,000 student borrowers.
Josh Shapiro said, “Navient repeatedly and deliberately puts profits ahead of its borrowers – it engages in deceptive and abusive practices, targeting students who it knew would struggle to pay back loans and education.” would put undue burden on people trying to improve their lives through Pennsylvania’s attorney general said in a release.
Shapiro said the settlement corrects Navient’s past behavior and puts in place “safeguards to ensure this company doesn’t fall victim to student loan borrowers again.”
The company said in a statement, Navient admits no fault in the settlement and “denies breach of any law or harm to the borrower, including consumer-protection laws.” Statement, The student loan servicer said it is resolving claims to save on legal costs.
As part of the settlement, Navient agreed to “maintain servicing practices that support the borrower’s success.”