Washington, DC—Thursday, Navient, a U.S. based corporation servicing student loans, announced that over 400,000 student loan borrowers can expect some student loan debt relief in the near future. For the over a million Virginians who are currently saddled with overwhelming debt, this news comes as a relief.
“Navient has taken advantage of too many hard working people in our community who are now saddled with unaffordable student loan debt,” Vanessa Clinton, Press Secretary at Progress Virginia said. “This greedy corporation preyed on individuals who took on debt based on the promise of financial security and economic success that comes with earning a degree in higher education. Forgiving student loan debt is good for families, small businesses, and the economy as a whole. This is a good step in the right direction, but we must continue to push for student loan forgiveness for everyone.”
More than 400,000 student loan borrowers will get debt relief from Navient [CNN Politics, Katy Lobosco]
“About 350,000 federal student loan borrowers whom Navient placed in long-term forbearance — which allowed them to temporarily stop making payments — will receive about $260 each, totaling $95 million in restitution.”
“Navient must fully cancel the remaining balances of private loans borrowed by about 66,000 students, totaling $1.7 billion. Those loans were largely made between 2002 and 2010.”
“Navient knew that people relied on their loans to make a better life for themselves and for their children and instead of helping them, they ran a multibillion dollar scam,” said Pennsylvania Attorney General Josh Shapiro at a press conference Thursday. He co-led the litigation with attorneys general from Washington, Illinois, Massachusetts, and California.
The state attorneys general claimed that Navient steered federal student loan borrowers into forbearance rather than directing them to enroll in low-cost repayment plans. As a result, some of these borrowers fell deeper into debt as interest accrued.