Breaking News
More () »

Student loan relief for struggling borrowers

Navient, one of the nation’s largest student loan servicers, will provide relief totaling $1.85 billion in a settlement with 39 states.

PENNSYLVANIA, USA — A settlement with a company that provides student loans means millions in debt relief for borrowers.

According to a release from the Pennsylvania Attorney General's office, Navient, one of the nation's largest student loan servicers, will provide relief totaling $1.85 billion to resolve allegations of unfair, deceptive, and abusive student loan servicing practices and abuses in student loans.

The settlement includes $1.7 billion in debt cancellation and $95 million in restitution; Pennsylvania borrowers will receive over $70 million in relief.

This settlement, joined by 39 attorneys general, resolves claims that since 2009, despite representing that it would help borrowers find the best repayment options for them, Navient steered struggling student loan borrowers into costly long-term deals instead of counseling them about the benefits of more affordable repayment plans.

Borrowers receiving private loan debt cancellation will receive a notice from Navient by July 2022, along with refunds of any payments made on the canceled private loans after June 30, 2021. Private loan borrowers do not need to take any action to qualify for relief.

Federal loan borrowers eligible for a restitution payment of approximately $260 will receive a postcard in the mail from the settlement administrator later this spring.

Approximately 13,000 Pennsylvania borrowers will receive $3.5 million in restitution payments, and another 2,467 Pennsylvanians will receive $67 million in debt cancellation.

For more information, visit www.NavientAGSettlement.com

See news happening? Text our Newstip Hotline.