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Attorney General Maura Healey announced on Thursday, Jan. 13, that a coalition of 39 attorneys general negotiated the $1.85 billion settlement with Navient.
Healey said the relief is provided to resolve allegations of "widespread unfair and deceptive student loan servicing practices and abuses in originating predatory student loans."
Under the terms of the settlement, Navient will cancel more than $1.7 billion in subprime private student loans for thousands of borrowers across the US.
“Navient promised to help struggling borrowers find the repayment options that worked best for them, but instead steered borrowers into situations that pushed them deeper into debt,” Healey said. “Today’s settlement requires Navient to fix their mistakes, provides relief for families in Massachusetts, and is an important step toward addressing our broken student loan repayment system.”
Massachusetts is set to receive more than $6 million in the settlement, including $2.2 million in restitution for more than 8,300 federal loan borrowers, the Attorney General's Office reported.
Healey said 1,523 borrowers in Massachusetts will receive the $41 million in private loan debt relief.
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