Navient Lawsuit Forgiveness Program Announces Settlement With 39 States

The Navient lawsuit forgiveness program provides federal student loan borrowers with modest restitution and loan forgiveness. The program also applies to some Navient private student loans and its predecessor, Sallie Mae. To be eligible, borrowers must have attended a certain for-profit educational institution, such as a Corinthian college or school, DeVry University, or an Art Institute. The settlement agreement also includes provisions to help qualifying borrowers with their restitution payments.

$1.7 billion in private student loan forgiveness

The federal government is now requiring Navient to follow strict guidelines for lending and collection, and also train specialists for at-risk borrowers. Moreover, it must also limit certain late fees. The lawsuit also calls on the federal government to intervene in the student loan debt crisis. The suit came after several states sued Navient in 2017 and California joined the lawsuit in 2018. The suit alleged that Navient systematically misrepresented its clients, offering them long-term payment plans that didn’t fit their budgets or pay off their debts on time. It said the company was shady and deceptive and offered high-interest private student loans to students with low graduation rates and dim career prospects. As a result, Navient has been forced to cancel $1.7 billion of private student loans.

The lawsuit claimed that Navient ensnared borrowers, causing them financial distress. This resulted in borrowers paying interest on their loans, missing out on qualifying payments, and paying excessive fees. While this settlement will offer financial relief for many borrowers, it won’t settle allegations against the Department of Education. The settlement will address some of the problems that borrowers faced when dealing with Navient, but won’t resolve the ongoing litigation involving the student loan industry.

$145 million in restitution

The settlement with the 39 states will result in the cancellation of more than $1.7 billion in student loans. Navient will be required to reimburse the states for the costs of litigation and investigations and will pay back the money to student loan borrowers. The amount of restitution paid to participant states will be smaller than the expected costs of litigation and investigations. Approximately 350,000 students will receive checks. The settlement has already been submitted to the U.S. District Court and is now awaiting approval by the court.

While Navient won’t admit to breaking any laws, it did agree to pay restitution to those who lost money as a result of its illegal practices. The settlement also requires the company to clarify options for borrowers, hire at-risk specialists, and limit late fees. The lawsuit was initiated by California Attorney General Rob Bonta and several other states, which later joined California in 2018. Navient violated state law by making students sign up for long-term payment plans and not advising them about income-driven repayment programs.

Dedicated line for navient lawsuit forgiveness applications

The Consumer Financial Protection Bureau and Attorneys General from several states have filed suit against Navient. Even though the company is supposed to help borrowers, the company has been intentionally delaying rulings. Navient should be transparent with borrowers about how it handles their cases, and they should make this easier for borrowers. A dedicated line for Navient lawsuit forgiveness applications is the first step in that process. To make it easy for borrowers, here’s how to reach a representative:

Navient Corporation is the nation’s largest student loan servicer. While the company is largely responsible for servicing millions of student loans, it has also been the target of numerous lawsuits. In 2017, the Consumer Financial Protection Bureau, several state attorneys general, and a group of teachers filed lawsuits against the company. In response to the growing number of lawsuits, Navient reached a massive settlement with 39 state attorneys general, which requires it to provide $1.85 billion in relief to student loan borrowers.

Information borrowers need to know about navient lawsuit forgiveness

If you’re a student who’s worried about Navient’s reputation, now is the perfect time to seek lawsuit forgiveness. Navient’s Settlement resolved nearly a decade’s worth of state investigations, but it didn’t come without a price. If you owe Navient money, here’s what you need to know. While Navient’s lawsuit has been dragged through the courts, you can still get your money back with a Navient settlement.

Despite the high cost of bankruptcy, Navient settled the lawsuits to avoid lengthy court battles. It was revealed that the company never expected to get back its $1.7 billion in debt, but it was able to forgo the entire amount with a $50 million settlement. Since Navient never repaid current borrowers, it’s not responsible for their delinquency and won’t compensate them. Until then, borrowers will have to keep paying Navient to maintain their private loans.