Settlement provides $1.7 million in restitution for Miss. borrowers & $8 million in private debt relief
Attorney General Lynn Fitch announced that Mississippi entered settlement with Navient, known as one of the nation’s largest student loan servicers.
This settlement will resolve allegations of unfair and deceptive student loan servicing practices.
This settlement will require court approval and provides $1.7 million in restitution for Mississippi borrowers and $8 million in private debt relief.
“Student loan debt can be a very real obstacle to achieving financial security, especially for young people just coming out of school,” said AG Lynn Fitch. “As a result of this settlement, Navient will be making much-needed improvements to the way it works with its customers to help them understand the options available to them and help them find the best option when they are facing serious challenges with loan repayment.
Separately from Mississippi, 39 state Attorneys General announced today their settlement of similar claims with Navient.
In 2018, the State of Mississippi filed a complaint against Navient, alleging that, “the company’s origination of high-cost, subprime loans and predatory practices while servicing student-loan borrowers in Mississippi violated the Mississippi Consumer Protections Act.”
The complaint was filed in the Hinds County Chancery Court and asks the court to order Navient to stop its unfair and deceptive practices targeting Mississippi students and reform its loan servicing practices. The complaint also asks Navient to give up unlawfully gained profits and provide damages to the state.
You can view a copy of the complaint below.