Navient To Cancel $67M In Pennsylvanians' Student Debt
By: KDKA-TV News Staff
PITTSBURGH (KDKA) - Thousands of Pennsylvanians will get nearly $67 million in debt canceled after a settlement with one of the nation's largest student loan servicers.
Navient is canceling $1.7 billion in debt and paying $95 million in restitution on loans owned by almost 66,000 people across the country, Pennsylvania Attorney General Josh Shapiro announced Thursday.
Nearly 2,500 borrowers in Pennsylvania will see their debts canceled, and about 13,000 will get $3.5 million in restitution payments, Shapiro's office said.
The settlement, joined by a coalition of 39 attorneys general, resolves allegations that Navient guided borrowers into expensive long-term forbearances instead of telling them about more affordable plans.
"Navient repeatedly and deliberately put profits ahead of its borrowers – it engaged in deceptive and abusive practices, targeted students who it knew would struggle to pay loans back, and placed an unfair burden on people trying to improve their lives through education," Shapiro said in a statement.
"Today's settlement corrects Navient's past behavior, provides much needed relief to Pennsylvania borrowers, and puts in place safeguards to ensure this company never preys on student loan borrowers again."
Navient borrowers eligible relief don't need to do anything except make sure the U.S. Department of Education has their current addresses. More information can be found here.