Navient Required To Cancel , $1.7 Billion in Student Loans.
NBC reports that one of the largest student loan services, Navient, has reached a deal with 39 states to cancel $1.7 billion in private student loans.
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On January 13, a settlement was announced that resolves six outstanding state lawsuits against Navient.
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The lawsuits came following accusations that the lender gave loans to millions of borrowers who would likely be unable to repay them.
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As part of the settlement, Navient will reportedly make a one-time $145 million payment to the states.
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NBC reports that the $1.85 billion deal will clear nearly 66,000 borrowers' student debt.
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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, Mike Pierce, executive director of the Student Borrower Protection Center, via NBC.
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, Mike Pierce, executive director of the Student Borrower Protection Center, via NBC.
In 2014, Sallie Mae split into two companies: , Sallie Mae Bank and Navient.
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NBC points out that as per the conditions of the settlement, Navient denies having violated the law.
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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, Mark Heleen, Navient’s chief legal officer, via NBC.
The same day that the settlement was announced, Navient shares climbed by 0.8% to trade at $21.98.
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According to a recent report by the Student Borrower Protection Center, in the last decade, the private student loan market has grown by over 70%.
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The market now stands at about $130 billion.
