Sallie Mae Navient Lawsuit Settlement

In a recent settlement, Navient agreed to cancel $1.7 billion in private student loan balances and pay $95 million to compensate borrowers of federal student loans. While Navient denies all the allegations, this settlement is a significant victory for the education industry. Read on for details of the Settlement. Were you affected by Navient’s unfair practices? Read on to learn about the settlement details. In addition to the settlement details, Navient has agreed to waive all fees, which is good news for borrowers.

Navient agrees to cancel $1.7 billion in private student loan balances

After a protracted legal battle with 39 states and six lawsuits, Navient has agreed to cancel $1.7 billion in private student loan debt, as well as make restitution payments to federal loan borrowers. The settlement will affect approximately 350,000 federal and 66,000 private loan borrowers. Navient did not admit wrongdoing, but instead said it agreed to settle because it didn’t want to continue this expensive process.

Under the agreement, Navient will cancel the remaining balances on nearly $1.7 billion in private student loan balances. In addition, it will pay $142.5 million to the attorneys general and distribute $95 million in restitution to roughly 350,000 federal student loan borrowers. This settlement will help students of all ages, from college freshman to mid-career borrowers who dropped out of a for-profit school in the early 2000s.

Navient agrees to pay $95 million to compensate federal loan borrowers

A new settlement between the United States and Navient, a student debt servicer, calls for reform of the company’s practices to end unfair practices and allow more borrowers to access repayment plans. The terms also include provisions to ensure that borrowers receive accurate information and that Navient customer service agents are not compensated in a manner that encourages them to minimize counseling time. This new agreement should provide relief to nearly 350,000 federal loan borrowers.

Under the terms of the settlement, Navient must explain to student borrowers the benefits of income-driven repayment plans and provide counseling to borrowers whose loans are federally guaranteed. Additionally, the company must inform public service loan borrowers of the federal loan forgiveness program. This settlement is an important step in addressing a widespread problem that impacted millions of students. The lawsuits cited numerous instances of Navient’s misconduct and are expected to result in more than a billion dollars in financial losses for borrowers.

Navient denies all charges

The plaintiffs in the sallie mae navient lawsuit allege that Navient improperly pushed borrowers into expensive forbearance periods. Those borrowers could have benefited from programs such as Public Service Loan Forgiveness or income-driven repayment plans. Instead, they struggled to pay off the principal balance of their loans. The plaintiffs allege that Navient violated California consumer protection laws, originating predatory subprime private student loans and misrepresenting their terms to borrowers.

In addition, the plaintiffs allege that Navient created obstacles to borrowers requesting a co-signer release. Furthermore, Navient manipulated its system for counting larger-than-required payments. For example, when a customer made an overpayment of $200 on a $100 loan, that overpayment would be applied to the next month’s bill. The plaintiffs allege that Navient knowingly pushed customers into default without making it clear to them that this was a risk.

Settlement details

The Sallie Mae Navient settlement is a huge victory for students. It resolves nearly a decade of investigations and state-level litigation that accused the student loan company of predatory lending. As the nation’s largest private student loan lender, Navient was a key player in the educational lending market. The company lent money to many students without determining their ability to repay. As a result, students and their parents are now free of private student loans.

The terms of the settlement agreement are significant. The agreement calls for the company to forgive student loans and pay modest restitution to those who were impacted by the company’s predatory lending practices. The settlement applies to private Navient student loans as well as their predecessor, Sallie Mae. To qualify, borrowers must have attended certain for-profit educational institutions, such as Corinthian schools, DeVry University, Art Institutes, or ITT Technical Institutes.