Navient, one of the largest student loan servicing companies in the United States has reached a tentative settlement of lawsuits brought by the Attorneys General of thirty-eight states and the District of Columbia.  According to the terms of the settlement which still requires court approval, Navient agrees to cancel 1.7 billion dollars in delinquent student loan debts and pay 95 million dollars in restitution to 66,000 borrowers who had loans with Navient.

According to the Attorneys General, Navient was guilty of making predatory loans to students who were unlikely to be able to pay back the loans and also put their clients into loan programs that increased the profit for Navient, but were unsuitable for the students as well as failing to inform the students of alternative repayment plans for which the students would be eligible that were more advantageous to the students.

As often is the situation in civil settlement such as this, Navient denies any liability, which I find ironic because by entering into the settlement, Navient, in effect says, that they did not do anything wrong and they promise not to do it again.

TIPS

The settlement only applies to borrowers who live in Washington D.C. and the states of the Atttorneys General who brought the case.  Upon approval of the settlement by the federal court, affected borrowers will be notified by Navient.  For more information about the settlement you can go to this website set up specifically to deal with the settlement. https://navientagsettlement.com/Home/portalid/0

For information you can trust about federal student loan repayment option, go to https://studentaid.ed.gov/sa/repay-loans .  There you can learn about loan deferments, forbearance, repayment and loan forgiveness programs and there is never an application fee.  If you owe private student loans, contact your loan servicer directly.  You can also look into student loan refinancing rather than consolidating the loans.  Refinancing student loans can result in a lower interest rate.  For more information about student loans go to https://www.consumer.ftc.gov/articles/1028-student-loans  Here is a link to a calculator that can help you determine whether you will save more by consolidating or refinancing student loans.https://www.makelemonade.co/calculators/student-loan-consolidation-refinancing-calculator/

Here also is a link to an FTC video that explains student loan scams and what you can do to protect yourself.  https://www.youtube.com/watch?v=7TjSI4Q6ztQ

For those of you receiving the Scam of the day through an email, I just want to remind you that if you want to see the ever increasing list of Coronavirus scams go to the first page of the http://www.scamicide.com website and click on the tab at the top of the page that indicates “Coronavirus Scams.”  Scamicide has been cited by the New York Times as one of three top sources for information about Coronavirus related scams.

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