Navient, one of the largest student loan servicers in the country, announced Thursday it has reached a $1.85 billion settlement with more than three dozen states in an effort to resolve allegations of predatory lending and deceptive practices over more than a decade. The resolution includes $1.7 billion in private student loan debt cancellation — owed by about 66,000 borrowers nationwide and originated largely between 2002 and 2010 — and $95 million in restitution for borrowers, a bipartisan coalition of state attorneys general said. Pennsylvania Attorney General Josh Shapiro, who spearheaded a lawsuit against Navient in 2017, said the loan management company steered borrowers further into debt through forbearance practices, which allowed borrowers to temporarily postpone repayment while still being charged interest. He also accused Navient of engaging in the use of risky subprime private loans for students to attend for-profit colleges, some with dubious track records, while knowing those borrowers would be unable to repay their debts. "Navient repeatedly and deliberately put profits ahead of its borrowers — it engaged in deceptive and abusive practices, targeted students who it knew would struggle to pay loans back, and placed an unfair burden on people trying to improve their lives through education," Shapiro, who co-led the settlement, said in a statement. Under the agreement, Navient is denying it violated consumer protection laws or caused borrowers harm. "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 in a statement. Navient, based in Wilmington, Delaware, was formed in 2014 when Sallie Ma . . . read the full article here.
Keywords: states, 185b, agrees, settlement, private, loans, debt, loan, million, navient, practices, student, borrowers
GPE: D.C., Iowa, Ohio, Maine, Hawaii, Kansas, Nevada, Oregon, Arizona, Florida, Georgia, Indiana, Vermont, Arkansas, Colorado, Delaware, Illinois, Kentucky, Maryland, Michigan, Missouri, Nebraska, New York, Virginia, Louisiana, Minnesota, Tennessee, Wisconsin, California, New Jersey, New Mexico, Washington, Wilmington, Connecticut, Pennsylvania, Rhode Island, Massachusetts, West Virginia, North Carolina, South Carolina,
DATE: 2010, 2014, 2017, Thursday, September, this spring, between 2002 and, more than a decade
NORP: Americans, Democratic
MONEY: $8 million, $95 million, $1.7 billion, $300 billion, $1.85 billion, about $1.7 trillion
CARDINAL: one, two, three, 12 million, about 66,000, More than 44 million, more than three dozen