According to a press release from the office of Idaho Attorney General Lawrence Wasden, eligible Idaho borrowers will receive nearly $4 million in student loan debt relief through a settlement with Navient, the one of the largest student loan servicers in the country.
The $3,972,316 in student 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 statement. “Furthermore, the settlement corrects Navient’s past actions and includes safeguards to help ensure the company does not take advantage of student borrowers in the future. I thank Navient for being willing to resolve this matter out of court.” for Idaho borrowers.
Borrowers receiving private loan debt relief under the settlement will receive written notice from Navient in the coming months and will not need to take any action to receive the benefit, according to the statement. The settlement came after concerns that Navient directed borrowers struggling with payments into high-interest forbearance options that added significant amounts of additional long-term debt, the statement said. It’s 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-based repayment plans and offer to estimate income-based payment amounts before placing borrowers in optional forbearances;
-Maintain customer service practices that support borrower success, such as processing payments quickly and accurately, making payment histories available to borrowers, directing additional payments to loans to higher interest rates and the possibility for borrowers to provide standing instructions for the allocation of additional payments; and
-Train specialists who will advise borrowers in difficulty on alternative repayment options.
The loans in question are private education loans issued 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 eligibility requirements of the settlement for loan release. If a question is not covered in the FAQ, contact the Attorney General’s Consumer Protection Division by email at [email protected] or by phone at 208-334-2424.
Idaho Capital Sun is part of States Newsroom, a grant-supported network of news outlets and a coalition of donors as a 501c(3) public charity. Idaho Capital Sun maintains editorial independence.