Sunday, May 22, 2022

Navient Agrees To Cancel Millions In Student Loans

Navient Corp. and Student Loan servicer Navient Solutions, agreed to a Settlement that will result in the Cancelation of more than $3.5 million in Student Debt, for New Hampshire Student Loan Borrowers, according to the State's Department of Justice.

Merrimack County Superior Court, resolved the Settlement between Navient and the New Hampshire Attorney General’s Office, over Allegations against the Company.

"This action provides important relief to New Hampshire student loan borrowers who were victims of Navient's illegal and harmful practices," Attorney General John Formella said. "Our Consumer Protection and Antitrust Bureau works diligently to protect New Hampshire consumers and today's settlement represents another important step in those efforts. I thank our Consumer Protection team for their efforts in this case."

As part of the Settlement, Navient agreed to provide $3,590,988.96 in Student Debt Cancelation for 129 qualifying Student Borrowers in New Hampshire. It also included other Changes to the Servicer’s systems, in order to help prevent a similar Allegation in the future. Navient must Improve its Customer Service.

The Canceled Loans mostly Originated between 2002 and 2010, and later Defaulted.

Borrowers who qualify for the Cancellation will receive a Notice from Navient in the coming months, and require No action on their part to obtain the benefit.

Back in January, Navient canceled more than $1.7 billion in Student Loans to settle Litigation with various State Attorneys General. The Agreement would Cancel Student Loans for about 66,000 Borrowers in 36 States and Washington, D.C.

Student Loan Debt increased by $14 billion in the First Quarter of 2022, to a New high of $1.59 trillion, according to the Federal Reserve Bank of New York. The amount now accounts for about 10% of Total household Debt.

Federal Student Loan Repayment plans are currently paused via a Federal Forbearance. Borrowers may also have some of their Student Loan Debt Canceled, if the White House Cancels Student Debt altogether. But, unlike Federal Student Loan borrowers, Private Loans wouldn't qualify for Loan Forgiveness.

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