Over 400,000 Student Borrowers to Receive Debt Relief from Navient | ABC Fox Missoula

MISSOULA, Mont. – One of the largest student loan companies, Navient, has reached a settlement agreement in which it will now have to reduce or eliminate student loan debt for more than 400,000 borrowers. That’s nearly $2 billion.

It comes as attorneys general in other states say Navient engaged in unfair practices and issued predatory loans to students who were unlikely to work to repay them.

About 350,000 federal borrowers will get about $260 each, totaling $95 million in restitution. In addition to canceling the remaining balances of 66,000 private student borrowers.

Although Navient recently changed its contracts to no longer service federal loans, many borrowers wonder if this lawsuit will affect them directly. Student loan expert Andrew Pentis shared what this means for borrowers in Montana.

“Navient is one such company that exited its contract and the federal loan industry as a whole at the end of 2021. If you’ve been served by Navient, you’ve probably heard from the Department of Education and your new repairer explain to you how you will resume these payments,” said Pentis.

At this time, if you have been notified of the lawsuit or changes to your lending company. Repayment options remain the same for private and federal borrowers.

If you are still unsure whether your loans have been affected by the lawsuit settlement, we encourage you to contact your lender to find out what payment relief options are available at this time.

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