Idaho announces millions in student debt relief after settlement – KMVT


BOISE, Idaho (KMVT/KSVT) — Idaho Attorney General Lawrence Wasden announced a multi-million dollar settlement with student loan servicer Navient.
In a press release, Wasden said the settlement, which totaled $3,972,316, will provide student debt relief to eligible Idaho borrowers.
“More than 170 Idaho borrowers will receive debt relief as a result of this settlement,” Wasden said. “Additionally, the settlement corrects Navient’s past actions and includes safeguards to help ensure the company does not take advantage of student loan borrowers in the future. I credit Navient for being willing to amicably resolve this matter for Idaho borrowers.”
The settlement is now pending court approval.
Navient will send written notice to borrowers receiving private loan debt relief under the settlement.
Wasden says Navient steered borrowers struggling to make payments to high interest forbearances that added significant additional long-term debt.
The agreed settlement also addressed Navient’s use of sub-prime private loans to students attending for-profit colleges with low graduation rates, resulting in them accumulating substantial debts they were unlikely to repay.
The settlement will require Navient to do the following:
Wasden says the affected loans are private education loans originating largely from 2002 to 2010 that are in default.
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