Sen. Vitelli lauds $1.85 billion settlement in Navient student loan abuse case
AUGUSTA — On Thursday, Maine Attorney General Aaron Frey, along with 38 other state attorneys general, announced a $1.85 billion settlement had been reached in a case against Navient, one of the largest student loan companies in America, for abusive and unfair practices.
Sen. Eloise Vitelli, D-Arrowsic, who sponsored Maine’s Student Loan Bill of Rights, released the following statement:
“For years in the Legislature, I’ve sponsored measures that fight back against abusive practices from student loan companies and protect Mainers who are just trying to further their education and careers. Every time one of these bills comes to committee, we hear countless stories of lies, misdirection or flat-out abuse. After so much frustration and heartache, I’m happy to see this win. While this settlement won’t provide relief for all borrowers, or completely undo the damage caused by Navient’s deception, it’s a massive step toward holding unethical lenders accountable. I applaud Attorney General Frey for joining this suit to stand up for Maine student loan borrowers. It also sends a clear message that these kinds of abusive practices must end, and the companies behind them must be held responsible.”
As part of the settlement, Maine will receive a total of $308,422 in restitution payments for more than 1,157 federal loan borrowers. Additionally, Maine borrowers will receive a total of $4,896,415 million in private loan debt cancellation. Federal loan borrowers who qualify for relief under this settlement do not need to take any action except update or create their studentaid.gov account to ensure the U.S. Department of Education has their current address. More information can be found at www.NavientAGSettlement.com.
