Little Rock- Attorney General Leslie Rutledge announced today that Navient, known as one of the nation’s largest student loan servicers, 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. As part of the settlement, 290 eligible Arkansas consumers will receive a total of almost $7 million in loan forgiveness. This settlement, joined by a coalition of 39 attorneys general, resolves claims that since 2009, despite representing that it would help borrowers find the best repayment options for them, Navient steered struggling student loan borrowers into costly long-term forbearances instead of counseling them about the benefits of more affordable income-driven repayment plans.
Read MoreAG Rutledge Announces Settlement with Student Loan Servicer Navient