Navient settles predatory student loan claims for $1.85B
Pennsylvania’s attorney general says the large student loan servicer Navient has settled allegations of predatory practices for $1.85 billion.
Attorney General Josh Shapiro said Thursday in a news release that the settlement includes $1.7 billion in debt cancellation and $95 million in restitution. He says the settlement involves 39 state attorneys general.
He says it resolves claims that Navient led student borrowers into long-term forbearances instead of giving them advice on less costly repayment plans. The New York Times reports that Navient says it did not act illegally and it did not admit fault in the settlement.