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Navient, one of the largest student loan lenders in the US, has reached $ 1.85bn with many countries accusing the company of “fraudulently closing” thousands of loans and expensive repayment plans.
The ruling affects one of the most well-known student loan providers in the US, which government officials have accused of engaging in sexual misconduct while examining the growing number of student loans.
Under an agreement with 39 US states, $ 1.7bn on student loan debt with approximately 66,000 clients will be eliminated, and Navient will pay $ 95m to reimburse students across the country.
“For a long time, Navient contributed to the student debt crisis by luring thousands of students into debt,” said Letitia James, a New York attorney general, in a statement. “Navient will no longer be able to put it in its pockets to pay for students who are trying to get a college degree.”
An international study found that by the year 2009 Navient pushed struggling students to repay their loans at a cheaper, longer-term rate instead of advising them on alternative repayment methods, which increased customer debt piles, according to the New York attorney general’s office. . .
Officials say the company “also provided fraudulent loans, subprime, private loans” to students attending elementary schools and low-income institutions, knowing that many of the lenders would not be able to repay their loans.
“The company’s approach to resolving these issues, which are based on frivolous claims, helps us avoid the extra burden, money, time and distractions that can arise in court,” said Mark Helen, Navient’s attorney general. Lenders have helped lenders choose “payment options that are tailored to their needs”, he said. Navient has denied any wrongdoing.
read more Navient settlement here.
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