Navient Student Loan Forgiveness Public Service

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Navient to Cancel $1.7 Billion Student Loan Debt

Pennsylvania Attorney General Josh Shapiro Announces Landmark Settlement

Temporary Expanded Public Service Loan Forgiveness Program Expands Loan Forgiveness Eligibility

HARRISBURG, PA - Attorney General Josh Shapiro today announced that Navient, one of the nation's largest student loan servicers, will cancel $1.7 billion in student loan debt for 66,000 borrowers.

The settlement is the result of a multi-state investigation that found that Navient engaged in illegal and deceptive practices that steered borrowers into forbearance instead of income-driven repayment plans, which would have allowed them to qualify for Public Service Loan Forgiveness (PSLF) sooner.

"Navient's actions were predatory and illegal, and they left thousands of Pennsylvanians struggling with student loan debt," said AG Shapiro. "This settlement will provide much-needed relief to borrowers and hold Navient accountable for its misconduct."

The settlement also includes a number of reforms to Navient's student loan servicing practices, including:

• Providing clear and accurate information to borrowers about their repayment options
• Automatically enrolling borrowers in income-driven repayment plans if they qualify
• Waiving late fees for borrowers who are struggling to make payments

The settlement requires Navient to pay $95 million to the states that participated in the investigation, including Pennsylvania, and another $25 million to the federal Consumer Financial Protection Bureau.

In addition to the settlement, the Department of Education (ED) has announced a number of changes to the PSLF program that will make it easier for borrowers to qualify for loan forgiveness. These changes include:

• Allowing borrowers to count payments made on federal student loans from any loan servicer, regardless of whether the loans were in repayment or forbearance.
• Waiving the requirement that borrowers must have worked for 10 years in a public service job before qualifying for loan forgiveness.
• Simplifying the application process for loan forgiveness.

These changes will make it easier for borrowers to obtain the loan forgiveness they deserve and will help to address the student loan debt crisis. For more information on the settlement, the PSLF program, or your student loan repayment options, please visit the Pennsylvania Office of Attorney General's website at www.attorneygeneral.gov.