Press

Today, 39 states settled lawsuits and investigations against the student loan giant Navient Corporation (Navient) related to allegations of predatory lending and illegal student loan servicing that harmed borrowers nationwide. Per the terms of the settlement, with a bipartisan group of 39 state attorneys general, borrowers will enjoy $1.7 billion...

La fiscal general de Nueva York, Letitia James, declaró que la empresa “contribuyó a la crisis nacional de la deuda estudiantil al atrapar de forma engañosa a miles de estudiantes en más deudas”.

The student loan cancellation will impact approximately 66,000 private student loan borrowers. Eligible private student loan borrowers should receive a notice from Navient by July 2022, along with refunds of any payments made on the canceled private loans after June 30, 2021.

The agreement would cancel the outstanding student loan balances of roughly 66,000 borrowers with private education loans that were started between 2002 and 2010, when Navient was known as Sallie Mae.

According to Education Department data, 4.4 million borrowers have been in repayment under IDR for 20 years or longer, but complexities in the program, like burdensome paperwork and deceptive practices by loan companies, have kept borrowers stuck in repayment, the organizations' report said.

A coalition of advocacy groups is calling on President Biden to enact sweeping changes to income-driven repayment plans for federal student loan borrowers.

Today, the SBPC, CRL, and NCLC released a whitepaper outlining why must act now, before the payment pause ends, to provide relief for the millions of federal student loan borrowers who have never seen the promise of income-driven repayment forgiveness.

“Borrowers are not aware of what all their rights are. The student loan system is complicated,” says Persis Yu, policy director at the Student Borrower Protection Center. “I think we need to see a remedy to acknowledge the fact that there has been a longstanding problem of borrowers getting steered...

While consumer groups and activists have applauded the payment pause’s extension, they remain focused on pushing for more. Biden repeatedly said canceling at least $10,000 in education debt would be part of his economic recovery plan after his election, but he didn’t include any such policy in this year’s sweeping...

What happens when loan repayment restarts an open question. From an administrative perspective, it could get messy. Before the pandemic — and when the economy was ostensibly in a stronger position — people were already struggling to pay. During the 2019 federal fiscal year, which runs from October 1 to September...