$1.7B Navient Settlement for Private College Borrowers

If you’ve thought about attending college, you’ve probably done the cost calculations in your head: how much will it cost per year, how much will it cost in total, how much will I have to borrow, what will my student loan payments be once I finish school? For students that attended certain for-profit educational institutions such as Corinthian schools, DeVry University, the Art Institutes, and ITT Technical Institutes students may have miscalculated how successful they’d be after graduation. The students may not have been the only ones.

The Attorney Generals of 39 states are alleging that Navient knew the students would struggle to pay back the loans and steered borrowers into forbearance programs instead of repayment options with lower monthly payments to let the interest accrue longer.

Now, thirty-nine Attorney Generals from around the United states have forced Navient (the company that used to be Sallie Mae) to forgive the student loans of 66,000 borrowers and pay out about $260 to each one.

The states covered are: Arizona, California, Colorado, Connecticut, the District of Columbia, Delaware, Florida, Georgia, Hawaii, Iowa, Illinois, Indiana, Kentucky, Louisiana, Massachusetts, Maryland, Maine, Minnesota, Missouri, North Carolina, Nebraska, New Jersey, New Mexico, New York, Nevada, Ohio, Oregon, Pennsylvania, Tennessee, Virginia, Washington and Wisconsin.

Read more here and here.