Arizonans to get over $58M from Navient student loan settlement
PHOENIX — More than $58 million from a $1.85 billion national settlement with Navient, a student loan servicer accused of unfair and deceptive practices, is heading to Arizonans, Attorney General Mark Brnovich announced Friday.
Under the settlement agreed on Thursday, about 2,200 Arizonans will get over $54 million in debt relief and 12,500 others will divvy up $3.3 million in restitution.
Navient was accused of coaxing struggling student loan borrowers into costly long-term forbearances instead of offering advice on the benefits of more affordable income-driven repayment plans.
“It’s disappointing how Navient took advantage of distressed loan borrowers who were simply trying to get an education to better their lives,” Brnovich said in a press release.
“I hope these settlement dollars will go towards making it right for them and also send a strong message to any other loan servicers that if you take advantage of consumers, you will be held accountable.”
Individuals who will have their debt canceled will receive a notice from Navient by July.
Those who will receive the $260 restitution payment will receive a postcard in the mail this spring.
All potentially affected Arizonans need to do is make sure their current address is up to date with the U.S. Department of Education.
Navient denied acting illegally, and it did not admit to any wrongdoing under the settlement, which is subject to court approval.
Also, Navient will be required to do more to advise borrowers of their options and explain repayment plans to them.
“Navient is and has been continually focused on helping student loan borrowers understand and select the right payment options to fit their needs,” Chief Legal Officer Mark Heleen said in a statement.
The Associated Press contributed to this report.