Thousands of students may get $2,000 each from $100 million loan settlement - see if you are in the list
A $100 million settlement with Navient will provide up to $2,000 in refunds to eligible student loan borrowers.Summary
A class action lawsuit against Navient, formerly Sallie Mae, has resulted in a $100 million settlement overseen by the Consumer Financial Protection Bureau (CFPB). The lawsuit alleged that Navient improperly steered borrowers into forbearance, causing interest to accrue and balances to grow, instead of guiding them towards income-driven repayment (IDR) plans. Some disabled borrowers, including veterans, also experienced issues with payments and credit reporting. As part of the settlement, Navient will provide refunds ranging from $50 to $2,000 to eligible borrowers, pay a $20 million fine, and is barred from servicing federal student loans. Borrowers with Navient loans placed into forbearance in 2017 or earlier may be eligible for a payment, with some already receiving checks without needing to submit a claim form. Kevin Thompson, CEO of 9i Capital Group, stated that the “real victims here are the borrowers whose credit was damaged and whose financial lives were thrown off course for years,” due to compounding interest and extended repayment timelines.
(Source：The Economic Times)