BALTIMORE (WJZ) Thousands of Marylanders with student loans will receive financial relief under a $1.85 billion settlement with student loan provider Navient, Maryland Attorney General Brian Frosh said. know on Thursday.
Maryland is one of 39 states suing Navient, alleging that, since 2009, the company and its subsidiaries have violated the Consumer Protection Act by directing borrowers to expensive prohibition measures instead. because the repayment plan is based on income.
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Under the terms of the deal, 66,000 Americans who took out subprime private student loans will have their $1.7 billion collective balance canceled. Another 350,000 students who took out federal loans will receive $95 million in compensation, the multi-state union said Thursday.
More than 1,100 Marylanders will be relieved of their student loan debt of $34 million and 11,836 residents will receive reimbursement checks totaling more than $3.1 million, Frosh’s office said. know.
“We allege that Navient’s conduct was illegal and burdened those struggling in Maryland with greater student debt,” said Frosh. “I am delighted that thousands of Marylanders will receive a substantial relief under this agreement.”
An order requires Navient to tell borrowers about the benefits of an income-based repayment plan. The company must also notify the borrower to the U.S. Department of Education Public Service Loan Forgiveness Program under the arrangement.
Borrowers with private loans whose debt is in cancellation will receive notice from Navient by July 2022, along with the repayment of any payments made on such loans after June 30, 2021, multinational alliance speak.
Federal loan borrowers who qualify for relief only have to update or create studentaid.gov accounts to their address are current, the union said.
More information is available at NavientAGSet Payment.com.
Frosh’s office also published a Document frequently asked questions. Borrowers may also call the Attorney General’s Consumer Protection Division at 410-528-8662.
Navient said it did not act illegally and did not admit any fault in the settlement.
“Navient has been and continues to focus on helping student loan borrowers understand and choose the payment options that are right for their needs. In fact, we’ve driven enrollment in income-based repayment plans and reduced default rates, and every year hundreds of thousands of borrowers we assist successfully pay off their student loans. them,” Navient legal director Mark Heleen said in a statement.
The Associated Press contributed to this report.
https://baltimore.cbslocal.com/2022/01/13/thousands-of-marylanders-will-receive-relief-from-1-85b-settlement-with-student-loan-provider-navient-frosh-says/ Thousands of Marylanders will receive relief in a $1.85 billion settlement with Student Loan Provider Navigator, Frosh Says – CBS Baltimore