Iowans could see some student loan debt canceled amid settlement with student loan company
CEDAR RAPIDS, Iowa (KCRG) - Borrowers in Iowa could see millions of dollars in student loan debt canceled amid a settlement between the state, and student loan provider Navient.
Navient is charged with using unfair, deceptive, and predatory lending practices that caused some borrowers to fall deeper into debt.
Iowa Attorney General Tom Miller announced he and 39 other attorneys general reached a settlement with the major student loan servicing company on Thursday.
Miller said under the terms of the settlement, Navient will cancel the remaining balance on more than $1.6 billion in subprime private student loan balances owed by about 62,000 borrowers nationwide. Additionally, about 350,000 federal student loan borrowers will get about $260 each, totaling $95 million in restitution. Iowa is expected to receive a total of $411,851 in restitution payments, for more than 1,545 federal loan borrowers.
“This long-overdue relief will help borrowers move forward and set an example for student loan servicers in the future,” Attorney General Miller said.
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