lawsuit class actio naviant student loantesa

#Lawsuit class actio naviant student loantesa update

People who will see debt cancellation will receive a notice from Navient and refunds of any payment on canceled private loans after June 30. Department of education has their current address.

#Lawsuit class actio naviant student loantesa update

The company also will be required to explain the benefits of income-driven repayment plans and to offer to estimate income-driven payment amounts before placing borrowers into optional forbearances.įederal loan borrowers who qualify for relief under the settlement do not need to take any action except update or create their account to make sure the U.S. It also will require Navient to make certain reforms, such as training specialists who will advise borrowers about alternative repayment options like Public Service Loan Forgiveness. The settlement still needs to be approved by the court. In fact, we’ve driven up income-driven repayment plan enrollment and driven down default rates, and every year, hundreds of thousands of borrowers we support successfully pay off their student loans.” “Navient is and has been continually focused on helping student loan borrowers understand and select the right payment options to fit their needs. “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. Maine Attorney General Aaron Frey announced the settlement in a news release Friday. More than 1,150 borrowers in Maine are expected to receive those payments. The company also will pay $95 million in restitution, about $260 each to approximately 350,000 people who were placed in certain types of long-term forbearances. Under the terms of the settlement, Navient will cancel the remaining balance on more than $1.6 billion in private loans to about 62,000 borrowers nationwide, including $4.9 million in loans to borrowers in Maine. The complaint also said Navient made predatory private loans to students who would be unlikely to repay them. While those borrowers could stop making payments on their loans, their debt increased because their interest continued to accrue. They accused Navient of steering borrowers into forbearance, or a pause in payments, instead of federal student loan relief programs. Thirty-nine attorneys general joined the lawsuit that accused Navient of engaging in unfair and deceptive practices.