Statement On Navient Settlement Cancelling $1.85 Billion in Predatory Student Debt | Press Release
January 13, 2022
“What Navient has done to student borrowers who were cheated by their schools is legally and morally disgusting.”
BOSTON – Today, Massachusetts Attorney General Maura Healey, joined by a coalition of 38 attorneys general, announced a settlement with private student loan lender Navient. Under the settlement, Navient will provide relief totaling $1.85 billion to resolve allegations of widespread unfair and deceptive student loan servicing practices and abuses in originating predatory student loans.
Statement from Eileen Connor, Director of the Project on Predatory Student Lending
“What Navient has done to student borrowers who were cheated by their schools is legally and morally disgusting. Navient has profited from the predatory for-profit college system for decades, making subprime private student loans to hundreds of thousands of students and benefitting from a broader system that scammed students and destroyed people’s lives. This is long overdue justice for students, including many of our clients, who have been frequently and aggressively harassed by Navient to pay back loans they should never have had in the first place.
We thank Attorney General Healey and the state attorneys general who have consistently stood up to predatory actors and fought for borrowers’ rights in court. Until students can be free of ALL the debts created by predatory schools – whether federal or private loans – we will keep fighting to ensure that borrowers receive justice.”
The Project on Predatory Student Lending has represented more than one million former for-profit college students and won landmark cases against the Department of Education and predatory colleges. Its litigation has helped cancel more than $2 billion of fraudulent student debt. The Project also represents borrowers in the case Villalba v. Navient.
About the Project on Predatory Student Lending
Established in 2012, the Project on Predatory Student Lending represents former students of predatory for-profit colleges. Its mission is to litigate to make it legally and financially impossible for federally-funded predatory schools to cheat students and taxpayers. The Project has brought a wide variety of cases on behalf of former students of for-profit colleges. It has sued the federal Department of Education for its failures to meet its legal obligation to police this industry and stop the perpetration and collection of fraudulent student loan debt.