Navient Reaches $1.85B Deal To End Student Lending Probes

By Dean Seal (January 13, 2022, 2:30 PM EST) -- Navient Corp. has agreed to cancel $1.7 billion in student loan debt and pay $142.5 million to resolve claims that the student loan servicer engaged in predatory practices for a number of years, several state attorneys general said Thursday.

A coalition of 39 state AGs worked together on the settlement after a multistate investigation found that, since 2009, Navient has steered struggling student loan borrowers into costly long-term forbearances rather than more affordable, income-based repayment plans.

The company is also accused of originating predatory subprime private loans to students at for-profit schools and colleges with low graduation rates, knowing that a...

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