Navient, one of the largest student loan servicers, has reached a settlement with 39 states, in which it will cancel $1.7 billion in private student…
Navient, one of the largest student loan servicers, has reached a settlement with 39 states, in which it will cancel $1.7 billion in private student loan debt. The settlement will mark an end to six separate lawsuits filed against the student loan company, which was accused of giving out loans to millions of borrowers who were unlikely to be able to repay them, and also improperly recommending federal loan forbearance instead of better relief options.
The company will also pay $145 million to the states and provide some restitution for borrowers in its former federal loan portfolio.
According to the settlement, not all of Navient's current and past private and federal loan borrowers are eligible for relief. On the private student loan side, only certain loans issued by Navient or Sallie Mae qualify. Here are the eligibility details:
To qualify for restitution based on Navient's dealings with its federal student loan borrowers, you'll need to meet these criteria:
Eligible borrowers will be notified sometime this summer if they qualify for relief or restitution under the settlement. You don't have to do anything to claim it. If you have questions, you can visit www.NavientAGSettlement.com or contact your state's attorney general's office.
Student loan debt has been stopping consumers from purchasing homes, saving money, living a life of freedom. Although there is relief on the way for some borrowers, there are still millions of students who will not benefit. If your student loans are creating financial distress, and you need some guidance towards repairing them or paying them off, we can help. Schedule a free consultation, and we'll take care of you.
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