LAS VEGAS (KLAS) — One of the nation’s largest student loan servicers will provide a total of $1.7B following a settlement with loan borrowers.
The settlement resolves claims that from as far back as 2009, student loan servicer Navient steered student loan borrowers into costly long-term forbearances instead of counseling them on more affordable repayment plans. The settlement includes $1.6B in debt cancellation and $95M in restitution for student loan borrowers across the country.
As part of the settlement, Nevada will receive a total of $1,053,752 in restitution payments for 3,952 federal loan borrowers. Additionally, 592 Nevada borrowers will receive a total of $17,140,858 in private loan debt cancellation.
The settlement also includes requirements that require Navient to correct and maintain its conduct in the future.
“This settlement provides relief to thousands of Nevada students who were victims to Navient’s misrepresentations and predatory practices,” said Nevada Attorney General, Aaron Ford. “This settlement also serves as a caution to other loan servicers that these practices will not be tolerated, and it is their responsibility to assist borrowers in an honest and professional manner.”
Federal loan borrowers who are eligible for a restitution payment of approximately $260 will receive a postcard in the mail from the settlement administrator later this spring.
Federal loan borrowers who qualify for relief under this settlement do not need to take any action except update or create their studentaid.gov account to ensure the U.S. Department of Education has their current address. For more information on the Navient settlement click HERE.