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Navient Settles Predatory Student Loan Claims For $1.85B

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FILE- This April 2, 2014, file photo, shows the headquarters of student loan debt collector Navient Corporation, in Wilmington, Del. 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, Jan. 13, 2022 in a news release that the settlement includes $1.7 billion in debt cancellation and $95 million in restitution. (William Bretzger/The Wilmington News-Journal via AP, File)

(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.

 

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