Navient, one of America’s 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.servicing companies,
Navient was accused of engaging in abusive and deceptive practices, including targeting students, which the company reportedly knew it would struggle with.,
Josh said, “Navient repeatedly and knowingly 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 put an undue burden on people trying to improve their lives through Pennsylvania Attorney General Shapiro 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.” Press release, The student loan servicer said it is resolving claims to save on legal costs.
As part of the agreement, Navient also agreed to “maintain servicing practices that support the success of the borrower.”
more to come.