LOCAL stories from WVPE's news team

Some Michigan student loan borrowers eligible for relief under settlement

Michigan Public | By Steve Carmody

Published January 20, 2022 at 9:23 AM EST

As part of the settlement, the loan servicing company Navient agreed to pay $95 million for states to offer affected borrowers some reimbursement — roughly $260 each to 350,000 borrowers.

More than 1,500 Michigan student loan borrowers have become eligible for a share of millions of dollars in debt relief as part of a multi-state settlement with a student loan company.

Until recently, Navient had a contract to service federal student loans, including a large portfolio of loans made under the Direct Loan Program.

But the company was accused of unfair and deceptive student loan servicing practices. Last week, Navient reached a settlement with 39 state attorneys general on behalf of more than 400,000 borrowers.

Under the settlement, borrowers get some debt relief. Michigan Attorney General Dana Nessel said the “predatory practices used by Navient exploited students who wanted nothing more than an education."

Navient did not admit to any wrongdoing as part of the settlement.