Maine Students with Loan Debt Just Got Good News from Naviant
Maine's Attorney General says the settlement of a national class-action lawsuit against student loan lender Naviant will bring millions of dollars to the state.
What was the Lawsuit All About?
The announcement was released on Thursday when the alleged predatory lender decided to settle a lawsuit brought by 39 state attorneys general. In the filing, Naviant was accused of convincing students to sign up for long-term forbearances, instead of educating them about more affordable options, despite the knowledge that a large percentage of those students would not be able to pay off their loans. According to the settlement, the company did not admit any fault or illegal actions. The total amount of the agreed-upon settlement is $1.85 billion dollars.
How Much Will Maine Get from the Settlement?
AG Frey detailed, in a media release, how much money will be coming to Maine.
Maine will receive a total of $308,422 in restitution payments for more than 1,157 federal loan borrowers. In addition, Maine borrowers will receive a total of $4,896,415 million in private loan debt cancellation.
This settlement will bring financial relief to many students who have been struggling under the burden of student loan debt, long after their school days are done.
How Will the Reimbursement Work?
Qualifying borrowers will receive a notice from Navient of private loan debt cancellation, along with refunds of any payments made on the canceled private loans made after June 30th, 2021. Federal loan borrowers who are eligible for a restitution payment will get a postcard in the mail in the Spring. No action is needed by Federal loan borrowers who qualify, except to update or create their student aid account to ensure that the U.S. Department of Education has their current address.
Find more information on this case a website set up specifically for the Naviant settlement.