Navient Settles Predatory Student Loan Claims for $1.85B

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Navient Settles Predatory Student Loan Claims for $1.85B
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Navient, a major student loan servicing company, has settled allegations of predatory lending practices for $1.85 billion

Under the terms of the settlement, Navient will cancel more than $1.7 billion in subprime private student loans owed by over 66,000 borrowers nationwide, Shapiro said. Navient will also pay a total of $142.5 million, of which $95 million will be distributed to approximately 350,000 federal loan borrowers who were placed in certain types of long-term forbearances.

Forbearance refers to when a lender allows a borrower to pause or reduce payments for a limited time while they build back their finances. However, interest on the loan continues to accrue and could ultimately cause the amount to be repaid over the life of the loan to be higher.“Navient is and has been continually focused on helping student loan borrowers understand and select the right payment options to fit their needs.

Navient must also train specialists who will advise distressed borrowers concerning alternative repayment options and counsel public service workers concerning Public Service Loan Forgiveness and related programs.

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Student Loan Giant Navient Settles Allegations Of Predatory Lending Practices With 39 States For $1.85 BillionStudent Loan Giant Navient Settles Allegations Of Predatory Lending Practices With 39 States For $1.85 BillionNavient, a large student loan servicer, has settled allegations of predatory lending practices for $1.85 billion, Pennsylvania’s attorney general announced Thursday.
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