Navient settles predatory student loan claims for $1.85B

By STEVE LeBLANC
Associated Press

BOSTON (AP) — Navient, a major student loan servicing company, has settled allegations of abusive lending practices for $1.85 billion. The settlement was announced Thursday and could cancel student loans for tens of thousands of borrowers. The deal includes $1.7 billion in debt cancellation and involves 39 state attorneys general. Navient has also agreed to pay over $140 million in other penalties. Pennsylvania Attorney General Josh Shapiro says the settlement would resolve claims that Navient led student borrowers into long-term forbearances instead of giving them advice on less costly repayment plans. Navient says it did not act illegally and it did not admit fault in the settlement.