Navient is one of the largest student loan collection companies in the country. A bipartisan coalition of state attorneys general are calling the resolution "a victory for student loan borrowers" The total amount of debt to be canceled, as well as an accompanying restitution agreement, is major — a deal worth about $1.85 billion.

Navient denies it violated consumer protection laws or caused borrowers harm. Navient says it is settling the agreement "to avoid the additional burden, expense, time and distraction to prevail in court" "This will be life-changing for a specific group of those people. But for everyone else, the fight continues," says Mike Pierce of the Student Borrower Protection Center.

About 66,000 student borrowers with Navient loans may see their debts forgiven. Borrowers with private loans taken out through Navient's predecessor company, Sallie Mae, between 2002 and 2014. Those borrowers must have had more than seven consecutive months of delinquent payments prior to June 30, 2021.

About 350,000 federal student loan borrowers would be eligible for a payment — about $260 per borrower. State attorneys general say those forbearance arrangements had driven student borrowers further into debt. Certain conditions apply to get the restitution, such as having at least one federal loan that was eligible for income-driven repayment.
Tap to copy the Short Url to this post:
All Business News on a Single Page. Join for Free →