Welcome To aBlackWeb

Navient reaches a 1.85 billion deal to settle claims of predatory behavior wirh Student loans in 39 states.

Mr.LV

OG
Navient reaches a $1.85 billion deal to settle claims of predatory behavior.



merlin_188974725_32422dcb-f8a1-4e9f-89e4-5a3ed9c6591b-articleLarge.jpg

Navient, once one of the country’s largest student loan servicing companies, reached a $1.85 billion deal with 39 states to settle claims that it had made predatory student loans that saddled millions of borrowers with billions of dollars in debt that they were highly unlikely to repay.

The deal, announced Thursday, requires Navient to cancel $1.7 billion in private student loan debts for nearly 66,000 borrowers and pay $95 million in restitution. The private loans were crucial to Navient’s ability to make a large volume of lucrative federal loans, prosecutors said.

“Navient repeatedly and deliberately put profits ahead of its borrowers — it engaged in deceptive and abusive practices, targeted students who it knew would struggle to pay loans back, and placed an unfair burden on people trying to improve their lives through education,” said Josh Shapiro, the attorney general of Pennsylvania, one of several states that had sued Navient.


Most of those who took out the private loans attended for-profit schools, often ones with low graduation rates and poor job-placement records. The private loans Navient made were — in the company’s own words, according to legal filings — a “baited hook” that the lender used to reel in more federally guaranteed loans. At some schools, it anticipated that more than 90 percent of the loans would default.


Navient, which did not admit any fault in the settlement, said it did not act illegally.
“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,” said Mark Heleen, Navient’s chief legal officer.

Daily business updates The latest coverage of business, markets and the economy, sent by email each weekday. Get it sent to your inbox.

The deal ends a major portion of a set of linked legal actions that began five years ago, when federal and state prosecutors sued the company, which was then at the heart of the student debt collection system.

The Consumer Financial Protection Bureau sued in federal court over what it called mistakes and tactics by Navient that inflated borrowers’ bills by billions of dollars. Several state attorneys general also filed state lawsuits claiming that Sallie Mae — Navient’s predecessor company, from which it split off in 2014 — made private, subprime loans to borrowers it knew were likely to default.

Under Education Department rules, no more than 90 percent of a school’s tuition payments can come from federal funding. The private loans were intended, according to court filings, to fill that gap and lure in students, who would then take out the lucrative federal loans that the schools — and Navient — relied on.

Those claims are the focus of Thursday’s settlement, but it also resolved the states’ charges that Navient inflated borrowers’ bills by steering federal loan borrowers into costly long-term forbearances instead of guiding them toward more affordable income-based repayment plans. The consumer bureau’s lawsuit, which centers on those claims, is continuing.

The settlement calls for payments of around $260 per person to be distributed to 350,000 federal loan borrowers who were placed in certain types of long-term forbearances. The deal, which was submitted to the U.S. District Court for the Middle District of Pennsylvania, requires court approval.

Mr. Shapiro said the settlement provides relief for borrowers affected by Navient’s past behavior and “puts in place safeguards to ensure this company never preys on student loan borrowers again.”
Navient decided last year to get out the federal student loan business. It ended its contract with the Education Department, which allowed the company to transfer its 5.6 million borrower accounts to a new vendor, Maximus, which does business as Aidvantage. But the company retained a portfolio of private student loans worth billions of dollars, and it later resumed that line of business. Navient has issued $17 billion in new private loans since it split from Sallie Mae.

“This is an enormous win for people with student debt,” said Mike Pierce, the executive director of the Student Borrower Protection Center. “We’ve spent lot of time thinking and talking about how to fix the federal student loan system, and we often ignore how many extremely economically vulnerable people are stuck with these private student loans that are destined to fail.”
 
What about the folks that managed to pay their shit off? Anything back for them or is it just folks that are still actively paying or on forbearance?

That being said $260 per person aint SHIT... hell that probably wont even put a dent in the amount of fuckin interest these bastards collected on these bum ass loans
 
They bought my shit from the original loaner. I probably don't qualify
 
  • Like
Reactions: GNS
They bought my shit from the original loaner. I probably don't qualify

I'm wondering since my original loans were with SallieMae then went over to Navient if I qualify. I was on forbearance for a good while 🤔

Best believe ima fuckin look tho lol
 
I'm still against 100% cancellation of student loan debt. What I will say is that IMO what should be done is all interest on the loans should be cancelled and people should only have to pay back the principal.
 
I'm still against 100% cancellation of student loan debt. What I will say is that IMO what should be done is all interest on the loans should be cancelled and people should only have to pay back the principal.
Do you believe college should be free?
 
No but it should be as expensive as it is. That shit is fucking insane what it costs to go to college.
i think its insane that it costs to go to college but i can sense your passion regarding this topic
 
I don't have a passion for the topic. Opinions is all.

Why do you feel it should be free?
when i say passion, i'm not trying to paint a picture that you would be protesting over your POV, but if i were to project, it would appear that perhaps you may have paid your loans off and dont think loans should be forgiven b/c if you can pay yours off, then everyone else should be able to pay theirs off. I could be totally off base and if i am, then I apologize in advance for making assumptions

however, if it's a state run institution, it should absolutely be free as they tend to receive a large significant portion of state revenue that is generated by taxes. Even if you just include what they get in tuition, well, that tuition comes from parents or students who pay state taxes so, as long as the school is being supported by taxes in some shape or fashion by the very people who attend the school or pay for others to attend it, to me, it should be free

this will help the state in a number of ways by continuing to have a workbase that isnt saddled with debt upon graduating that can use that money in other areas that help aid in increasing the quality of life for that state in a myriad of ways.
 
What makes their practice different from other lenders?

Also on a side note, I think all college scholarships/grants should be abolished. That’s the only way to get tuition rates down to a cost actually supported by the market.
 
Well considering it's only 1.85 billion...

And most people got 100k worth of debt....

It could be less than 10,000 people effected.... And it's prolly millions going through this...
 
when i say passion, i'm not trying to paint a picture that you would be protesting over your POV, but if i were to project, it would appear that perhaps you may have paid your loans off and dont think loans should be forgiven b/c if you can pay yours off, then everyone else should be able to pay theirs off. I could be totally off base and if i am, then I apologize in advance for making assumptions

however, if it's a state run institution, it should absolutely be free as they tend to receive a large significant portion of state revenue that is generated by taxes. Even if you just include what they get in tuition, well, that tuition comes from parents or students who pay state taxes so, as long as the school is being supported by taxes in some shape or fashion by the very people who attend the school or pay for others to attend it, to me, it should be free

this will help the state in a number of ways by continuing to have a workbase that isnt saddled with debt upon graduating that can use that money in other areas that help aid in increasing the quality of life for that state in a myriad of ways.

I didn't take it as you meant I would be protesting or anything of the sort. Yes, I did pay my student loans off but I also didn't go into a high ass debt because I understood earlier on I wasn't trying to be in that type of debt and understood what paying off any type of loan big or small meant. I never feel just cause I did something that others should be able to as well. Life and circumstances don't work like that across the board. We both know its niggas that put in more practice hours than Jordan and Kobe and still can't play worth shit.

Thing is with the loans folks knew or should've known that they were going to have to pay it back. The lenders fucked with the predatory interests rates and shit like that. So that is why I said the interest should be eliminated and just have people pay back the principal. That way the lenders don't make any money. We all know if you give someone a lump sum of money and they piecemeal you back the money it's like you never got the shit back cause you more than likely spend that shit when they give it to you in bits and pieces on everyday life shit.

I get your position with the taxes and other help schools get monetary wise from the state and fed gov't. IMO free still is a bit much. I'd say that the price should be drastically reduced though. I could see states and feds doing something with the textbook racket. Cause that's some bullshit. A big reduction in tuition and basically free textbooks sounds like a good starting point.

Regardless of me paying off my loans something needs to be done in regards to how loans are done, price of tuition and books. Shit is out of control.
 
I don’t care even if I can afford to pay it off I pay the bare minimum every month , defer whatever
 
What makes their practice different from other lenders?

Also on a side note, I think all college scholarships/grants should be abolished. That’s the only way to get tuition rates down to a cost actually supported by the market.

Never thought about that. Could you or some explain the correlation between scholarships and grants with the high price of tuition?
 
What about the folks that managed to pay their shit off? Anything back for them or is it just folks that are still actively paying or on forbearance?

That being said $260 per person aint SHIT... hell that probably wont even put a dent in the amount of fuckin interest these bastards collected on these bum ass loans
But the attorneys are going to get millions, so in their eyes justice was served
 
I didn't take it as you meant I would be protesting or anything of the sort. Yes, I did pay my student loans off but I also didn't go into a high ass debt because I understood earlier on I wasn't trying to be in that type of debt and understood what paying off any type of loan big or small meant. I never feel just cause I did something that others should be able to as well. Life and circumstances don't work like that across the board. We both know its niggas that put in more practice hours than Jordan and Kobe and still can't play worth shit.

Thing is with the loans folks knew or should've known that they were going to have to pay it back. The lenders fucked with the predatory interests rates and shit like that. So that is why I said the interest should be eliminated and just have people pay back the principal. That way the lenders don't make any money. We all know if you give someone a lump sum of money and they piecemeal you back the money it's like you never got the shit back cause you more than likely spend that shit when they give it to you in bits and pieces on everyday life shit.

I get your position with the taxes and other help schools get monetary wise from the state and fed gov't. IMO free still is a bit much. I'd say that the price should be drastically reduced though. I could see states and feds doing something with the textbook racket. Cause that's some bullshit. A big reduction in tuition and basically free textbooks sounds like a good starting point.

Regardless of me paying off my loans something needs to be done in regards to how loans are done, price of tuition and books. Shit is out of control.
understood

but i refuse to believe that if other countries, lesser developed than the US can have college tuition be free and they havent crumbled, then the US can do the same and not crumble as well
 
understood

but i refuse to believe that if other countries, lesser developed than the US can have college tuition be free and they havent crumbled, then the US can do the same and not crumble as well

Great point
 
Back
Top