Navient Just Forgave $3.5 Million in Student Loans – Here’s Who Qualifies
Navient, one of the nation’s leading student loan servicers, has agreed to forgive $3.5 million in student loans. The canceled loans are part of a settlement between Navient and the New Hampshire Attorney General’s Office regarding several allegations against the company. Here’s what you need to know.
The last agreement of cancel student loans comes after Navient was accused of predatory lending practices.
In January, Pennsylvania Attorney General Josh Shapiro announced that Navient had agreed to a settlement with 39 states that would void $1.7 billion in private student loans at risk owed by 66,000 student borrowers, mostly in for-profit schools. At the time, Navient denied any wrongdoing. “The company’s decision to resolve these issues, which were based on unsubstantiated claims, allows us to avoid the additional burden, expense, time and distraction that prevails in court,” Navient’s chief legal officer said.
Months later, on May 9, documents filed in Merrimack Superior Court show that a consent judgment was entered which resolved allegations that Navient engaged in predatory practices. These practices included supposedly originating subprime loans that the company expected borrowers to default on, making billing and payment systems difficult for borrowers and co-signers.
As part of this, Navient has agreed to forgive an additional $3.5 million in student loans that impact 129 student borrowers. The borrowers who will now have their student loans canceled took out private education loans between 2002 and 2010 and then defaulted, about 129 student borrowers.
Those who qualify to have their student loans canceled as of the latest settlement will be contacted by Navient in the coming months. More information will be on the Company Websitewhich you can check for more details.
For those who qualify for the latest loan forgiveness, this is great news. However, more and more Americans are pushing for more widespread loan forgiveness for students. President Biden campaigned on a promise to cancel $10,000 in student debt per borrower, but so far nothing has happened other than Biden’s debt cancellation for specific borrowers.
Some people took advantage of this, such as those linked to the Public Service Loan Forgiveness Scheme (PSLF), disabled borrowers and those who attended institutions accused of defrauding particular groups. But although most Americans say they would like to see debt forgiveness for all borrowers, that hasn’t happened yet.
Nearly 45 million Americans have outstanding student loan debt, which totals more than $1.7 trillion. During the COVID-19 pandemic, the United States Department of Education issued a student loan payment break. This meant eligible borrowers would have a suspension of loan repayments, a zero percent interest rate and a halt to collections on defaulted loans. The pause has been extended to August 31, 2022. It remains to be seen whether or not the payment pause will be extended or whether or not Biden will announce debt forgiveness action before then.