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CT To Have $19M In Student Debt Canceled As Part Of $1.85B Settlement

Navient will have to pay a total of $95 million in restitution for thousands of student borrowers across the United States.
Navient will have to pay a total of $95 million in restitution for thousands of student borrowers across the United States. Photo Credit: Pixabay/pasja1000

Connecticut Attorney General William Tong announced that $19 million in loan debt is being canceled for student borrowers in the state after an investigation into one of the country's largest student loan servicers found it deceived thousands of borrowers.

Tong said in an announcement on Thursday, Jan. 13, that a coalition of 39 attorneys general negotiated the $1.85 billion settlement with Navient. 

A multistate investigation found that since 2009, Navient deceived thousands of student loan borrowers into forbearance plans that led them to pay more than they should have paid, Tong said. 

“Navient steered borrowers to costly payment plans, and away from reasonable and affordable options and programs," Tong said. "Their predatory loans left thousands of Connecticut families saddled with unaffordable debt. This settlement will send millions of dollars directly to thousands of Connecticut borrowers who were deceived by Navient’s abusive practices."

Navient will have to pay a total of $95 million in restitution for thousands of student borrowers across the United States.

Tong said in Connecticut, 1,339 borrowers will receive $19 million in direct private loan debt relief. A total of 4,875 borrowers will also receive $1.3 million in restitution. 

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