One of the largest U.S. student loan collection companies will be canceling hundreds of thousands of loans and paying restitution to a number of borrowers as part of a $1.85-billion settlement announced last week.
Navient Corp has agreed to a settlement agreement in a lawsuit brought by several state attorneys general that the company’s predecessor Sally Mae made unfair and predatory loans to more than 400,000 student borrowers. As part of the settlement agreement, about $1.7 billion in Navient student loans held by about 66,000 Americans will be canceled and about 350,000 federal student loan borrowers will receive about $260 each in restitution.
