7.5 Billion Dollar Student Loan Lawsuit Settlement
Introduction
Student loan debt is a growing problem for many Americans. In fact, it has reached a staggering $1.6 trillion. This debt can be overwhelming for individuals who are trying to start their careers and build a life for themselves. However, there is some good news for those who have been struggling to pay off their student loans. Recently, a $7.5 billion student loan lawsuit settlement was reached, providing some much-needed relief to borrowers.
The Lawsuit
The lawsuit was filed against Navient, one of the largest student loan servicers in the United States. The lawsuit alleged that Navient engaged in deceptive practices, such as steering borrowers into costly repayment plans and failing to properly apply payments. As a result, borrowers were forced to pay more than they should have, and some even fell into default.
The Settlement
The $7.5 billion settlement is one of the largest ever reached in a student loan lawsuit. Under the terms of the settlement, Navient will pay $5.2 billion in restitution to borrowers who were harmed by their practices. In addition, Navient will make changes to its practices to ensure that borrowers are treated fairly in the future.
Who is Eligible?
If you have a student loan serviced by Navient, you may be eligible for restitution under the settlement. Eligible borrowers will be notified by Navient and will receive a payment based on the amount of harm they suffered. The settlement covers loans serviced by Navient between January 1, 2002, and January 20, 2021.
What You Need to Know
If you are an eligible borrower, you do not need to take any action to receive restitution. Navient will contact you directly. However, it is important to be aware of the following:
- It may take some time for Navient to distribute restitution payments.
- Be wary of scams. Navient will not ask you for personal information or payment in order to receive restitution.
- If you are unsure if your loan is serviced by Navient, you can check with the National Student Loan Data System.
Conclusion
The $7.5 billion student loan lawsuit settlement is a positive step towards addressing the student loan debt crisis in the United States. If you are an eligible borrower, be sure to keep an eye out for communication from Navient regarding your restitution payment. And if you are struggling with student loan debt, remember that there are resources available to help you manage your debt and create a plan for repayment.