Navient settlement to cancel student loan debt for thousands of Arizonans
More than 2,000 Arizona consumers stand to have millions in student-loan debt erased due to a multistate settlement with the company Navient.
The case stems from allegations of predatory lending practices.
Since 2017, dozens of states, including Arizona, have accused Navient of shepherding struggling student borrowers to pause or drastically reduce their payments, instead of advising them about less costly plans to get out of debt.
Without admitting fault, Navient is forecasted to pay a total of $57.3 million to Arizona consumers as part of a multistate settlement.
The vast majority of the money will come in the form of debt cancellation.
The Attorney General’s Office said Navient will also make individual compensation payments of $260 to more than 12,000 Arizonans.