Student Loan Provider To Cancel $1.7 Billion In Debt After Reaching Settlement With 39 States
Student borrowers across the United States are about to see their student loan debt forgiven after a legal settlement was reached with one of the largest providers on Thursday.
Navient, a Delaware-based company, struck a $1.85 billion legal settlement with 39 states that would see $1.7 trillion used to forgive loans serviced by the company. Under the terms of the agreement, students who were found to have been provided loans despite evidence that they would be unable to repay their debts to Navient. It is expected that 66,000 student borrowers will receive relief as a result of this settlement.
State attorney generals and student loan activists praised the ruling as a victory for students saddled with burdensome debts.