Connect with us

Hi, what are you looking for?

Loan And Finance

66K Borrowers Get $1.7 Billion Student Debt Canceled

navient class action final



navient class action final

A major student loan servicing company has reached a settlement that will cancel $1.7 billion in student loan debt for around 66,000 borrowers, as well as provide $95 million in restitution – around $260 each – to 350,000 borrowers.

“Today’s settlement corrects Navient’s past behavior . . . and puts in place safeguards to ensure this company never preys on student loan borrowers again,” said Pennsylvania Attorney General Josh Shapiro in a statement.

Navient’s settlement with attorneys general in 39 states is over two primary accusations:

  • Redirecting borrowers into forbearance instead of pushing them toward more sensible income-based repayment options.
  • Through its predecessor, Sallie Mae, directing borrowers to subprime loans that they knew would likely default.

“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,” said Shapiro.

Here’s what you need to know about the settlement.

How to Find Out if the Navient Settlement Affects You

If you’re unsure who your loan servicer is, you can easily find out by logging into your account at studentaid.gov.

You should be able to identify the types of loans you have as well as your servicer through your account dashboard. Or you can call the Federal Student Aid Information Center (FSAIC) at 1-800-433-3243.

According to the settlement statement, borrowers who qualify don’t need to take any further action other than to make sure the U.S. Department of Education has their current address through their studentaid.gov account.

Borrowers who qualify for private loan debt cancellation will receive a notice from Navient by July 2022 and will be refunded any payments made on canceled private loans after June 30, 2021.

Advertisement. Scroll to continue reading.

Federal loan borrowers receiving the approximate $260 restitution payment will receive a postcard from the settlement administrator in the spring of 2022.

Tips for Anyone Struggling With Student Loan Debt

Nationally, some 43 million borrowers owe a total of $1.6 trillion in student loan debt. More than 5 million of them are in default.

While wholesale student loan forgiveness remains a distant possibility, it’s best to use the extended forbearance period to your advantage and make a debt payoff plan.

Here are some strategies for paying down your student debt — fast and forever — including checking into whether you qualify for Public Service Loan Forgiveness.

If you’re nearing retirement and still owe on student loans, here are six ways to cope.

Robert Bruce is a senior writer for The Penny Hoarder.


Advertisement. Scroll to continue reading.



.



Source link

Advertisement. Scroll to continue reading.
Click to comment

Leave a Reply

Latest

Technology

Source: Matthew Cassinelli / iMore On Tuesday, Apple previewed new accessibility features coming to their platforms this year, including new navigation, health, and communication...

Technology

Source: Joseph Keller/iMore Until very recently, the prospect of a USB-C iPhone seemed like a pipe dream. Then in the space of just a...

Online Business Success

Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich, Switzerland, on November 20, 2014. — Reuters...

Top Stories

Bitcoin (BTC) struggled to recover its latest losses on May 21 after Wall Street trading provided zero respite. BTC/USD 1-hour candle chart (Bitstamp). Source:...

Loan And Finance

Electric vehicles are becoming increasingly popular as gas prices skyrocket. In fact, automakers plan to pivot to largely electric lineups in the coming decade,...

Top Stories

The past week in the decentralized finance (DeFi) ecosystem was dominated by Terra’s collapse and its aftermath on various ecosystems it was connected. Now...

Advertisement

You May Also Like

Uncategorized

Introductions get a lot of attention. I’ve explored the topic of how to write them even though as a reader, I always skip them....

SEO Guide

There are all kinds of pictures of the world on the internet, but to find one of these specific pictures that you want to...

Online Business Success

The internet is now our nervous system. We are constantly streaming and buying and watching and liking, our brains locked into the global information...

Online Business Success

You can think of link building in many ways. I like to call it tedious, painful, and a test of patience. It’s also necessary...

Advertisement