Thursday, January 20, 2022
HomeEducationNavient Reaches $1.85B Settlement With States

Navient Reaches $1.85B Settlement With States

Thirty-nine state attorneys basic introduced a settlement with Navient over the servicing of scholar loans.

“For too lengthy, Navient contributed to the nationwide scholar debt disaster by deceptively trapping 1000’s of scholars into extra debt,” mentioned Lawyer Common Letitia James of New York State. “As we speak’s billion-dollar settlement will carry aid to 1000’s of debtors in New York and throughout the nation and assist them get again on their ft. Navient will now not be capable to line its pockets on the expense of scholars who’re making an attempt to earn a university diploma. Pupil mortgage servicers that function by way of deception and wrongdoing won’t be tolerated and might be held accountable by my workplace.”

The investigation discovered, in line with James, that Navient additionally supplied predatory, subprime, non-public loans to college students attending for-profit faculties and faculties with low commencement charges, though the corporate knew {that a} very excessive share of these debtors can be unable to repay the loans. Navient allegedly made these dangerous subprime loans as an inducement to get faculties to make use of Navient as a most well-liked lender for extremely worthwhile federal and personal loans, with out regard for debtors and their households, a lot of whom it unknowingly ensnared in money owed they might by no means repay.

Navient will cancel the remaining steadiness on almost $1.7 billion in subprime, non-public scholar mortgage balances owed by almost 66,000 debtors nationwide.

The corporate denied doing something unlawful. “The corporate’s choice to resolve these issues, which had been based mostly on unfounded claims, permits us to keep away from the extra burden, expense, time and distraction to prevail in court docket,” mentioned Mark Heleen, Navient’s chief authorized officer.



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