Navient reaches $1.85 bln settlement into student lending practices (updated)

Navient

13/01/2022 16:44

(Adds details of settlement)
    Jan 13 (Reuters) - Navient Corp  NAVI.O , one of the largest
U.S. student loan companies, has reached a $1.85 billion
settlement with most U.S. states to resolve accusations it
steered borrowers into predatory loans and costly repayment
packages.
    The accord with 38 U.S. states and Washington, D.C. resolves
several lawsuits into practices dating back many years,
including when Navient was known as Sallie Mae.
    Navient will cancel about $1.7 billion of subprime loan
balances for about 66,000 borrowers whose loans were largely
made between 2002 and 2010 and later went into default.
    The company will also pay $95 million in restitution to more
than 350,000 borrowers.
    Navient estimated it will pay $145 million overall to the
states, including to reimburse their costs.
    The company denied violating any law or causing borrower
harm in agreeing to settle.
    "The company's decision to resolve these matters, which were
based on unfounded claims, allows us to avoid the additional
burden, expense, time and distraction to prevail in court,"
Chief Legal Officer Mark Heleen said in a statement.

 (Reporting by Chris Prentice in Washington, D.C. and Jonathan
Stempel in New York; Editing by Diane Craft)
 ((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters
Messaging: jon.stempel.thomsonreuters.com@reuters.net))