Faqs Regarding the Navient Settlement

What is actually Navient?

Navient is actually a buddies one features federal and private student education loans. Until recently, Navient had an agreement to help you provider government college loans owned by the fresh You.S. Service off Studies, plus several thousand fund generated within the Lead Financing System and you will a smaller sized amount of loans made beneath the Federal Family members Education loan (FFEL) System. Towards , the newest You.S. Company of Studies revealed the newest transfer of the offer away from Navient so you’re able to Aidvantage, a division out-of Maximus Federal Functions, Inc. However, Navient will continue to service federal student loans generated under the FFEL System which might be belonging to individual loan providers and non-government individual figuratively speaking.

Navient was made when you look at the 2014, when the business then called Sallie Mae (officially, SLM Corporation), split up their financing servicing and data recovery team from its consumer banking organization. Adopting the separation, their loan repair and you may range surgery was in fact re also-labeled since Navient, and individual financial team continued beneath the Sallie Mae brand.

What is actually it payment about?

The newest Massachusetts Attorneys Standard or other condition Lawyer General registered legal actions against Navient alleging that the team and its particular subsidiaries violated individual protection guidelines because of the getting into unjust and you can deceptive servicing and you will range methods and you can, while the Sallie Mae, originating predatory subprime individual student education loans . Among other things, the brand new Attorney Standard enjoys alleged one to:

Exactly what relief does the fresh new settlement bring?

Beneath the payment, $95 million one Navient provides offered to shell out towards the Claims might be utilized since the restitution to compensate government financing individuals whom have been listed in certain kinds of enough time-title forbearances. Navient has accessible to bring financial obligation cancellation to specific private financing consumers, and also to reform the mortgage-maintenance methods.