Nashville-Attorney General Herbert H. Slatery III announced Thursday that Navient, one of the nation’s largest student loan servicers, will provide relief totaling $1.85 billion to resolve allegations of deceptive practices in originating predatory student loans. Tennessee borrowers will receive nearly $50 million in relief and the State will receive more than $687,000.
The settlement also requires Navient to change its business practices which includes explaining the benefits of income-driven repayment plans before placing borrowers into optional forbearances.
Federal loan borrowers do not need to take any action except update or create their studentaid.gov account to ensure the U.S. Department of Education has their current address. For more information, visit www.NavientAGSettlement.com.
Borrowers receiving private loan debt cancellation will receive a notice from Navient, along with refunds of any payments made on the cancelled private loans by July 1, 2022.