Skip to Content
AP National Business

Navient settles predatory student loan claims for $1.85B

<i></i><br/>
KMIZ

By
Published 11:21 AM

By STEVE LeBLANC
Associated Press

BOSTON (AP) — Navient, a major student loan servicing company, has settled allegations of abusive lending practices for $1.85 billion. The settlement was announced Thursday and could cancel student loans for tens of thousands of borrowers. The deal includes $1.7 billion in debt cancellation and involves 39 state attorneys general. Navient has also agreed to pay over $140 million in other penalties. Pennsylvania Attorney General Josh Shapiro says the settlement would resolve claims that Navient led student borrowers into long-term forbearances instead of giving them advice on less costly repayment plans. Navient says it did not act illegally and it did not admit fault in the settlement.

Article Topic Follows: AP National Business

Jump to comments ↓

Associated Press

BE PART OF THE CONVERSATION

ABC 17 News is committed to providing a forum for civil and constructive conversation.

Please keep your comments respectful and relevant. You can review our Community Guidelines by clicking here

If you would like to share a story idea, please submit it here.

Skip to content