These lawsuits against Navient related to allegations of predatory lending and illegal student loan servicing that harmed borrowers nationwide. Per the terms of the settlement, with a bipartisan group of 39 state attorneys general, borrowers will enjoy $1.7 billion in cancellation on dangerous, high-cost private student loans.
This is an enormous win for people with student debt. It offers desperately needed relief to people who were victims of predatory lending by Sallie Mae and Navient a decade ago and cancels billions of dollars of debt.
It is also a bipartisan endorsement of the idea that the student loan system is broken. These lawsuits have been controversial, but this settlement is not. This includes Republican AGs from Georgia, Tennessee and elsewhere who have previously been on the sidelines of this fight. There is now a broad bipartisan consensus that the student loan system is broken and both federal and private student loan borrowers have been cheated out of their rights.
This builds the case for sweeping action by the Education Department. The CFPB, which also sued Navient for illegal student loan servicing, remains in litigation with the company. Billions of dollars in loans owned by the U.S. Department of Education were covered in the allegations made in this settlement. The burden now shifts to Washington, particularly Sec. Cardona, to do right by these borrowers and cancel their debts.
If you’re struggling with debt, call our office at 816-524-4949 or click here to schedule a consultation to determine your best option.