Eligible Idaho borrowers will receive nearly $4 million in student loan debt relief from a settlement with Navient, one of the nation’s largest student loan servicers, according to a press release from Idaho Attorney General Lawrence Wasden’s office.
The $3,972,316 in student loan debt relief comes from a settlement filed Friday in Ada County District Court, where it is pending court approval.
“More than 170 Idaho borrowers will receive debt relief as a result of this settlement,” Wasden said in the release. “Additionally, the settlement corrects Navient’s past actions and includes safeguards to help ensure the company does not take advantage of student loan borrowers in the future. I credit Navient for being willing to amicably resolve this matter for Idaho borrowers.”
Borrowers receiving private loan debt relief under the settlement will receive written notice from Navient in the coming months and do not need to take any action to receive the benefit, according to the release. The settlement occurred after concerns that Navient steered borrowers struggling with payments to high-interest forbearance options that added significant amounts of additional long-term debt, according to the release. It is part of a multi-state settlement announced in January.
According to the press release, the settlement also requires Navient to:
- Continue to explain the benefits of income-driven repayment plans and offer to estimate income-driven payment amounts before placing borrowers into optional forbearances;
- Maintain customer service practices that support borrower success, such as processing payments quickly and accurately, making payment histories available to borrowers, directing extra payments to loans with the highest interest rates, and enabling borrowers to provide standing instructions in allocating extra payments; and
- Train specialists who will advise distressed borrowers concerning alternative repayment options.
The affected loans are private education loans originated largely between 2002 and 2010 that are in default.
The Office of the Attorney General has prepared a list of Frequently Asked Questions to help borrowers better understand the settlement’s eligibility requirements for loan discharge. If a question is not covered in the FAQs, contact the Attorney General’s Consumer Protection Division via email at [email protected] or by phone at 208-334-2424.
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