Thousands of student loans to be canceled in $1.85 billion Navient settlement. Many more borrowers can expect $260.

Asia's Tech News Daily

Thousands of student loan borrowers are expected to receive long-sought debt relief through a $1.85 billion consent judgment announced Thursday with Navient, one of the nation’s largest student loan companies.

If approved by a federal court, the agreement between the Delaware-based company and attorneys general for 39 states and the District of Columbia would resolve state allegations that Navient used unfair, deceptive and abusive student loan servicing practices in originating predatory loans.

The agreement would cancel the outstanding student loan balances of roughly 66,000 borrowers with private education loans that were started between 2002 and 2010, when Navient was known as Sallie Mae.

Additionally, 350,000 federal student loan borrowers are expected to receive $260 each from a $95 million restitution payment from Navient. The borrowers, who struggled to repay, were placed in forbearance programs that plunged them into deeper debt, rather than less costly income-based payment plans.

Fact? Checked.Make sure you have the real story with the Checking the Facts newsletter.

Most of those students had been enrolled in for-profit educational institutions, such as Corinthian Colleges and ITT Technical Institutes, which later closed when the federal government stopped lending at the schools.

Pennsylvania Attorney General Josh Shapiro, who helped lead the states’ legal coalition, said the agreement would provide “much needed relief” to student loan borrowers.

“Navient repeatedly and deliberately put profits ahead of its borrowers – it engaged in deceptive and abusive practices, targeted students who it knew would struggle to pay loans back, and placed an unfair burden on people trying to improve their lives through education,” Shapiro said in a statement announcing the agreement.

However, Navient denied any wrongdoing and said the company agreed to the settlement because the state lawsuits began more than eight years ago and were nowhere near the trial stage.

View in new tab

“The company’s decision to resolve these matters, which were based on unfounded claims, allows us to avoid the additional burden, expense, time and distraction to prevail in court,” said Mark Heleen, Navient’s chief legal officer. “Navient is and has been continually focused on helping student loan borrowers understand and select the right payment options to fit their needs.”

STUDENT LOAN RELIEF:President Biden extends pause on student loans for an additional 90 days

STUDENT LOAN FORGIVENESS: Half a million people to benefit from overhaul, some immediately

A separate U.S. Consumer Financial Protection Bureau lawsuit filed against Navient with similar allegations is continuing. The company has also denied wrongdoing in that case.

The settlement also includes reforms that would require Navient to explain the benefits of income-driven repayment plans before placing student loan borrowers into forbearance programs. The company also would be required to counsel borrowers who are now in public service jobs about a federal loan forgiveness program that could help eliminate their debts.

Mike Pierce, the executive director of the Student Borrower Protection Center, called the agreement a victory.

“At long last, the student loan borrowers who had been forced to shoulder the burden of dangerous and predatory private student loans made by Sallie Mae and owned by Navient will finally be debt free,” said Pierce.

Internet Explorer Channel Network
Asia's Tech News Daily
News Related

OTHER NEWS

Ahead of Assembly elections, will EC extend ban on poll rallies, roadshows? Key meet today

© Provided by DNA The Election Commission of India is scheduled to hold a virtual meeting with the Union Health Secretary and the Chief Health Secretaries of the five poll-bound ... Read more »

Lawsuit Claims Universal Duped Ana de Armas Fans Into Watching ‘Yesterday’

California resident Michael Rosza in October watched the trailer for Universal’s Yesterday and thought that Ana de Armas played a substantial role in the romantic comedy. But upon renting it, ... Read more »

How vaccine misinformation left children vulnerable to Omicron

© JEFF KOWALSKY An eight-year-old child receives the Pfizer-BioNTech Covid-19 vaccine at the Beaumont Health offices in Southfield, Michigan on November 5, 2021 The Covid-19 pandemic took a deadly toll ... Read more »

HelloFresh Review: Everything to Know About the Popular Meal Delivery Service

© HelloFresh With all things delivery becoming increasingly popular, food is no different. The meal kit market has exploded over the last decade, especially recently in the wake of COVID-19. ... Read more »

Namrata Shirodkar birthday special: Did you know it took Mahesh Babu 4 years before he could finally marry the actress?

© Provided by BollywoodLife.com Namrata Shirodkar left every girl envy when she tied the knot with South superstar Mahesh Babu. While every girl dreamt of marrying the handsome hunk, it ... Read more »

Wildcard tournament returning for The International 11

Valve has announced that The International 11 is going to have a new format and a different qualifier system compared to past years. Following the enormous backlash surrounding the cancelation ... Read more »

The CSGO viewer's guide to BLAST Premier: Spring Groups 2022

BLAST Premier: Spring Groups 2022 marks the new beginning of Counter-Strike: Global Offensive’s biggest third-party circuit.  BLAST has quickly become the biggest tournament organizer in CSGO outside of Valve itself. ... Read more »

Police concern grows over missing girl Serena, 16

Metropolitan Police Service officers at Haringey are becoming increasingly concerned regarding the whereabouts of missing girl Serena. The 16-year-old has been missing from the N10 area of north London since ... Read more »

18 Valentine's Day Cards That Will Make Your Crush Blush

Valentine‘s Day Card (Photo: Valentine‘s Day Cards) We hope you love the products we recommend! All of them were independently selected by our editors. Just so you know, HuffPost UK ... Read more »

‘Sasurji saath me cheers karte hain': Bharti Singh on her bond with Gujarati in-laws

© Provided by DNA Bharti Singh’s hilarious antics have never failed to make people laugh. She recently went on Twinterview, a chat programme presented by twin sisters Chinki Minki, where ... Read more »

A hybrid senatoriable from showbiz

© Provided by The Manila Times Rundy Montoya (rightmost) with colleagues at the Actors Guild Close to fifty candidates from show business have fielded their respective candidacy for the coming ... Read more »

Model Marc Cubales gives back; plans to direct BL series

© The Manila Times Print model and entrepreneur Marc Cubales in one of his charity event. Print model and entrepreneur Marc Cubales was a model in the United Kingdom (UK) ... Read more »

How to best play new champion Zeri, the Spark of Zaun

The latest addition to League of Legends’ roster has some players struggling and wondering how best to play Zeri. Zeri, The Spark of Zaun has debuted to one of the ... Read more »

With Cockburn out, No. 17 Illinois falls 81-65 to Maryland

COLLEGE PARK, Md. (AP) — Donta Scott scored a career-high 25 points and Maryland took advantage of Kofi Cockburn’s absence in an 81-65 victory over No. 17 Illinois on Friday ... Read more »

“Mereka tanggal kain, tutup aurat saya, sambut bayi”, wanita Melayu kongsi detik bersalin dibantu peserta Thaipusam

© Provided by Free Malaysia Today Lidawati dan Ismaidi bersama bayi yang disambut peserta Thaipusam, selasa lalu. KLANG: Walaupun dipenuhi kesan darah, Lidawati Zakaria nekad mencuci dan menyimpan selendang atau ... Read more »

Guests on Sunday talk shows: Sen. Chris Coons (D-Del.) on ABC's 'This Week'

© Provided by LA Times Sen. Chris Coons (D-Del.) will be a guest on ABC’s “This Week.” (Chip Somodevilla / Getty Images) CBS News Sunday Morning (N) 6 a.m. KCBS; ... Read more »

‘I’m a Dermatologist and These Are the 5 Products I Always Recommend for Hyperpigmentation’

As fun (aka, regrettable) as those “Oops, I forgot to put on sunscreen!” beach days of your youth (we’re all older and wiser now and apply SPF daily, obvs) may ... Read more »

Theatre, concert venues in Edmonton postpone shows as Omicron rages on

© Edmonton Opera Cast and crew rehearse for the February production of Giacomo Puccini’s La Bohème at the Northern Jubilee Auditorium. Many theatres and concert venue operators in Alberta are ... Read more »

Death of horse tripped while filming stunt for South Korean drama prompts outcry

© Daniel Kalker/picture alliance/Newscom/FILE The headquarters of South Korean national broadcaster KBS in Seoul on September 2, 2015. South Korea’s public broadcaster has apologized over the death last year of ... Read more »

Thousands of anti-abortion protesters take to streets of Washington

The Supreme Court ruling could possibly overturn the landmark 1973 Roe v Wade ruling that affirmed the constitutional right to an abortion. Read more »

'Proud' Tongans determined to rebuild battered homeland after eruption

© Handout A handout photo taken on January 18, 2022 and released on January 21 by New Zealand Defence Public Affairs shows an aerial view of Mango Island following the ... Read more »

The head of the NAACP said the organization is 'reinvigorating' to attract younger members

© AP Photo/Richard Vogel NAACP President Derrick Johnson poses for a photo on Saturday, Jan. 15, 2022, in Los Angeles. AP Photo/Richard Vogel The NAACP pioneered the Civil Rights movement ... Read more »

USMNT roster for World Cup qualifiers in January, February

Gregg Berhalter has called 28 players into the upcoming camp ahead of the USMNT’s 2022 World Cup qualifiers against El Salvador, Canada and Honduras at the end of January and ... Read more »

Danilo Petrucci on Dakar, MotoGP, and MotoAmerica

© Provided by Cycle World Danillo Petrucci is the first rider to win a MotoGP Race and a Dakar Rally stage. Danillo Petrucci is the first rider to win a ... Read more »

Twitter suspends hundreds of accounts promoting Marcos

© Provided by Interaksyon MANILA — Twitter said on Friday it had suspended hundreds of accounts that were promoting Philippines presidential election candidate Ferdinand Marcos Jr, which it said had violated rules ... Read more »

US suspends flights by China carriers after Beijing COVID move

© Provided by Al Jazeera China Eastern is one of four Chinese airlines affected by the US flight suspension [File: Kamil Krzaczynski/Reuters] The government in the United States has said ... Read more »

PNP COVID-19 cases breach 47K mark

Philippine National Police building The number of COVID-19 cases among personnel of the Philippine National Police (PNP) breached the 47,000-mark on Saturday after 310 new infections were recorded. Data from ... Read more »

Kelly Clarkson and ex-husband Brandon Blackstock reach settlement on Montana ranch

Kelly Clarkson and ex-husband Brandon Blackstock have reached a settlement in the home-ownership battle over their Montana ranch. According to court documents filed at the Los Angeles County Superior Court ... Read more »

No. 9 UConn thumps Seton Hall 71-38, avoids rare losing skid

STORRS, CONN. (AP) — Olivia Nelson-Ododa had 17 points, 14 rebounds and five assists, and injury-depleted No. 9 UConn beat Seton Hall 71-38 on Friday night. The Huskies (10-4, 5-0 ... Read more »

Business groups warn rising energy prices 'will put brakes on economy'

Britain’s biggest business groups have warned the Chancellor that spiralling energy prices ‘will act as a brake on the recovery’. As the cost of living crisis deepens, business chiefs wrote ... Read more »

Love Island's Liam gives fans a look inside his and Millie's £1m Essex home as he shows off HUGE new sofa

LOVE Island winner Liam Reardon has given fans a look inside the £1m Essex home he shares with Millie Court – showing off their huge new sofa. Liam, 22, posted ... Read more »

Raiders' Nate Hobbs cited for driving 110 MPH two weeks after DUI

For the fourth time this week, an NFL player is in trouble with the law. Nate Hobbs, a rookie cornerback for the Raiders, was cited for allegedly driving 110 miles ... Read more »

Love Island's Arabella Chi accused of photoshop fail on her bottom as fans spot curved glass in snap

LOVE Island star Arabella Chi has accused of a major photoshop blunder after fans pointed out the “curved glass” around her pert posterior. The 30-year-old reality star showed off her ... Read more »

The One Show fans all say the same thing as Fearne Cotton makes rare live TV appearance

THE One Show viewers were all saying the same thing as Fearne Cotton made a rare appearance on the show last night. After taking a break from being on camera, ... Read more »

Death in Paradise viewers devastated as ‘favourite' character leaves BBC One drama and may be ‘killed off'

DEATH In Paradise viewers were left devastated as Sergeant Florence Cassell left tonight and fans fear she may be “killed off”. The detective – played by Josephine Jobert – made ... Read more »

We were kicked out of our beach chalet with no warning – but no one will tell us why

A FAMILY kicked out of a beachfront chalet with no warning are devastated they can't return – and no one will tell them why. For generations, the Winslow family has ... Read more »

I found it impossible to get a dentist appointment – I ripped out bits of tooth with pliers

A FRUSTRATED man has shared how he was forced to rip out bits of his tooth with pliers after struggling to find a dentist. Carlton Hill, 28, from Gorseinon, Swansea, described how ... Read more »

Arnold Schwarzenegger ‘in bad car accident as SUV rolls over onto Prius' leaving woman ‘bleeding heavily from head'

ARNOLD Schwarzenegger was reportedly in a bad car accident on Friday as his “SUV rolled over onto a Prius” in a wild crash “that looked like movie stunt.” The 74-year-old ... Read more »

'A good idea to use him at No. 6. He can throw his bat at will': Gavaskar identifies next 'finisher' for India in ODIs

With India now suffering a series loss in the ODIs to go with a defeat in Tests, things look off colour for the Men in Blue. KL Rahul’s captaincy career ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic