Ohio Attorney General's Office, FlickrCC
Dave Yost pointing at all the people Navient screwed
More than 19,800 Ohioans who had federal student loans through Navient between 2009 and 2017 will receive $5.3 million in restitution payments from the recently announced $1.85 billion multi-state settlement. And more than 3,500 Ohioans with Navient loans totaling some $81.8 million will have their loans completely forgiven.
"This settlement puts money back into the pockets of borrowers struggling to pay for college," Ohio attorney general Dave Yost said
. "It's also an important reminder for corporations that there are consequences for prioritizing profits over the public's best interest."
Navient, the AGs alleged, directed borrowers to lengthy repayment plans or long-term forbearances with high interest instead of affordable schedules based on income, targeted students attending for-profit schools with predatory subprime loans, and generally behaved in a deceptive manner.
In addition to cutting the $1.85 billion check, Navient agreed to a host of reforms for how the company communicates with and counsels loan holders, including educating them on income-based plans and sharing information on the Public Service Loan Forgiveness program.
Those who will receive restitution payments or have their loans canceled will be contacted by Navient directly by July.