Navient Agrees to Discharge $1.7 Billion of Private Student Loans

Navient will cancel over $1.7 private student loans given to students to attend for-profit institutions such as ITT Technical Institutes. Navient will also pay $95 million in restitution payments to federal student loan borrowers who were placed in certain types of forbearances.

The basis of the argument was that Navient originated subprime student loans for borrowers attending several predatory for-profit schools and gave these high-interest private student loans to students where they knew or should have known, that repaying these loans would be difficult due to the schools’ low graduation rates and dim career prospects.

We often defend consumers in Navient private student loan lawsuits stemming from these exact practices and have been raising these issues before judges for years.

Navient did not admit to any misconduct as a part of the settlement.