IDAHO — The State of Idaho and Navient, one of the nation's largest student loan servicers, reached a settlement of nearly $4 million, Attorney General Lawrence Wasden announced Friday. The settlement is now pending court approval.
The settlement stems from concerns of Navient's practices.
"The practices resulted in students often incurring substantial debts they were never likely to repay," Wasden said in a news release.
As a result of the settlement, more than 170 Idaho borrowers will receive debt relief. Eligible borrowers will receive written notice from Navient, and do not have to take any action to collect the relief. The eligible loans were mostly issued between 2002 and 2010.
In addition to providing student loan debt relief, the settlement 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.
" I credit Navient for being willing to amicably resolve this matter for Idaho borrowers," Wasden said.
More information on the eligibility requirements can be found here. If you have further questions, call the Idaho Attorney General's Consumer Protection Division at 208-334-2424.