Navient Settles Predatory Student Loan Claims; Massachusetts Borrowers To Get More Than $41 Million In Relief


BOSTON (CBS/AP) — Navient, a large student loan servicer, has settled allegations of predatory lending practices for $1.85 billion. The settlement includes $1.7 billion in debt cancellation and $95 million in restitution.

The settlement involves 39 state attorneys general, including Massachusetts Attorney General Maura Healey, and resolves claims that Navient led student borrowers into long-term forbearances instead of giving them advice on less costly repayment plans.

“They should never have been putting borrowers into loans that they knew these borrowers couldn’t afford,” Healey said. “Much of this debt could’ve been avoided had Navient taken the time to advise federal loan borrowers on repayment options.”

Healey also said that Navient, formally known as Sallie Mae, originated loans that were allegedly deceptive and “doomed to fail,” resulting in “lifetimes of crushing student loan debt.”

Massachusetts is getting more than $6 million from the settlement, including $2.2 million in restitution for over 8,300 federal loan borrowers, as well as $41 million in private loan debt relief for 1,523 borrowers, according to Healey.

Navient said it did not act illegally, and it did not admit any fault in the settlement, The New York Times reported.

“The company’s decision to resolve these matters, which were based on unfounded claims, allows us to avoid the additional burden, expense, time and distraction to prevail in court,” Mark Heleen, Navient’s chief legal officer said, according to the Times.

Healey said that eligible borrowers don’t need to do anything to claim their part of the settlement – payments will be sent out in the mail.

(© Copyright 2022 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.)

Stay connected with us on social media platform for instant update click here to join our  Twitter, & Facebook

We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.

For all the latest Education News Click Here 

Read original article here

Denial of responsibility! is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
Leave a comment