This photo of Tulane University was taken June 3, 2010. (Photo by Tulane Public Relations Creative Commons License)
More than a thousand students from Louisiana who borrowed money for their education from the loan servicer Navient will have their debt forgiven after a settlement was reached between the company at 39 states, Attorney General Jeff Landry announced Thursday. The outstanding total debt being forgiven in the Navient student loan settlement for Louisiana is nearly $24 million.
In addition, Navient will pay $3.6 million in restitution payments for more than 13,000 federal loan borrowers in Louisiana.
In total, Navient has agreed to pay a total of $95 million in restitution payments of about $260 each to approximately 350,000 borrowers who were placed in certain types of long-term forbearances. Navient will cancel the remaining balance on nearly $1.7 billion in subprime private student loan balances that nearly 66,000 borrowers nationwide owe.
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The Navient student loan settlement for Louisiana, which requires court approval, was filed Thursday in the 19th Judicial District Court in Baton Rouge. It covers 1,178 borrowers who will receive a total of $23.7 million in private loan debt cancellation.
Landry said in a statement from his office that Navient agreed to forgive the debt “to resolve allegations of widespread unfair and deceptive student loan servicing practices and abuses in originating predatory student loans.”
The Navient student loan settlement also includes payment of $142.5 million to the attorneys general from the 39 states.
Borrowers whose debt is being canceled will receive a notice from Navient by July, along with refunds for any payments made on the cancelled loans after June 30, 2021. Borrowers eligible for restitution payments of approximately $260 will receive a postcard in the mail from the settlement administrator later this spring.
More information is available at www.NavientAGSettlement.com.
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