Weiser: Navient paychecks coming for 7,000 borrowers | New

Nearly 7,000 Coloradans will see checks in the mail from a settlement earlier this year that the Colorado attorney general’s office reached with Navient, a student loan servicer who used unfair, deceptive loan-serving practices and predators.

Attorney General Phil Weiser announced the installments on August 1 – following the nationwide investigation by a bipartisan coalition of 39 attorneys general that uncovered evidence that Navient pushed struggling student borrowers into long-term forbearances rather than advising them on the benefits of more affordable, income-driven repayment plans.

As part of the settlement, more than 1,000 Coloradans will have their student loans forgiven and nearly 7,000 will receive $260 in restitution from Navient. Checks can arrive this week.

Consumers receiving funds should look for a letter from the Colorado Attorney General’s office with a check. Checks should be deposited or cashed promptly as they may expire and be voided after 90 days.

“Protecting student borrowers is a top priority for my office,” Weiser said. “Navient’s predatory lending put many Colorado residents in stressful financial situations and acted in ways that threatened long-term negative consequences. For the consumers who had to deal with these unfair practices, I am so sorry for their mistreatment and happy that we can return some of the money.

The settlement required Navient to cease its deceptive practices and notify borrowers of the limited waiver opportunity for the U.S. Department of Education’s Civil Service Loan Forgiveness, which temporarily offers millions of skilled civil servants the possibility of having previously ineligible repayment periods taken into account for loan forgiveness.

Colorado led the investigation into Navient’s misconduct regarding the PSLF program and championed the inclusion of these requirements in the regulations.

No one will ask recipients for their bank details, date of birth, social security number, or any other personal information in exchange for their payment. All of these questions are indicators of fraud or scam.

The Office of the Attorney General’s Student Loans Ombudsman is a resource for student borrowers statewide. Borrowers with questions about their student loans can click here.

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