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Thursday, January 20, 2022

To Cancel $1.7 Billion Of Student Loan Debt, Navient Reaches An Agreement After 39 States.

The student loan collector Navient has announced a $1.85 billion settlement with 39 state attorneys general, which will lead an estimated 6 million borrowers on their books canceling about 1/4th of all private loans for school expenses across America! This decision is likely going to benefit many Americans who are struggling financially or have been unable to find steady employment after graduating from college- it’s great news that these people can finally breathe easy knowing there isn’t another debt burden coming down the pipeline.

The government has announced that they will forgive $1.7 billion in private loans for 66,000 people who borrowed money to attend certain schools across the participating states!

While many people are aware that there was a lawsuit filed against Navient last year, for some it may come as news when you hear about the company being accused of predatory lending practices. This newest update brings our total up to 49 states who have joined forces with Pennsylvania in their fight against these types of unfair actions taken by this particular lender!

Navient is a company that “repeatedly and deliberately put profits ahead of its borrowers,” according to Shapiro. They engaged in shady practices like targeting students who were likely not going to be able to pay back their loans, which placed an unfair burden on them still trying to do better through school while also putting Navients own interests first by focusing more resources towards those it felt would struggle with repayment than others (the ones they knew).

The practice of Navient employees pointing borrowers towards “long-term forbearances” is one key point in the suit brought by Shapiro.

Navient’s forbearance practices allowed borrowers to pause or reduce payments to address other areas of their finances, but interest could still pile up on the loans. This often led them to have to pay more over time than if they had paid it all without a delay due to t0forbearance.

The New York Times reports that the federal court in Pennsylvania has pending approval a settlement which would lead to about 350,000 borrowers who were placed into forbearance programs receiving $260 per person.

The forgiveness of these student loans is the result of an ongoing court battle between students and the government. The settlement was reached earlier this year, but it only covers certain types of institutions that were involved in filling out application forms with wrong information which led them into repayment trouble later down the line – including ones connected toNavient Corp.

The Times also reported that because the settlement would forgive largely delinquent loans, Navient had only estimated it would receive about $50 million in repayment on the $1.7 billion in loans it agreed to cancel.

If you are affected by this Navient anger management issue, don’t worry! You may be contacted by them if the settlement is approved and will receive a partial refund on payments made in 2020.

For more details and updates visit instachronicles.

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