Politicians Are Poody Heads

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Navient, the Giant Federal Student Loan Contractor, Cancels 66,000 Loans and Settles with Students It Misguided

on January 20, 2022


In a massive legal settlement last week, Navient, the huge federal student loan contractor, agreed to cancel 66,000 student loans and make modest restitution payments to thousands of borrowers who were poorly advised over many years by Navient’s loan counselors.

For the Washington Post, Danielle Douglas-Gabriel explains: “Navient, one of the nation’s largest student loan companies, has entered into a $1.85 billion settlement with a coalition of state attorneys general to resolve allegations that it steered borrowers into costly repayment plans and predatory loans.  The agreement Thursday puts to rest multiple state probes into the company’s loan servicing and lending practices dating back to when it was known as Sallie Mae.  The agreement spans 39 states and the District (of Columbia) and will deliver $1.7 billion in private student loan cancellation to 66,000 borrowers nationwide and another $95 million in payouts.”

In coverage last September, Douglas-Gabriel reported that…

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