For those who have a student loan serviced by Navient, there could be a debt cancellation in the future. Navient has been sued and has settled to the tune of $1.85 billion. Michigan is part of a multi-state settlement.
Michigan Attorney General Dana Nessel said, “The predatory practices used by Navient exploited students who wanted nothing more than an education. The company placed borrowers in risky subprime loans, causing them to incur debts they could never repay. This settlement reflects accountability for affected borrowers across the country.”
Michigan has 1,576 borrowers eligible for a total $38 million debt cancellation. They will be contacted by Navient by July of this year and could receive refunds on any payments made on canceled loans. The loans were mostly sold to students attending for-profit universities.
No action is required on the part of the borrowers, but they should make sure their studentaid.gov account has accurate contact information and that any addresses have been updated.
Reporting for WGRT – Jennie McClelland
