$41 MILLION IN STUDENT LOANS FORGIVEN

By Bob Katzen

An estimated 1,523 Massachusetts residents who still owe a total of $41 million in student loans received good news last week.

Their loans have been forgiven as a result of a successful lawsuit by Attorney General Maura Healey and 38 other state attorneys general against Navient, one of the nation’s biggest students loan servicers. Healey’s office said this settlement resolves claims that Navient steered financially stressed federal student loan borrowers into “costly long-term forbearances instead of counseling them about the benefits of more affordable income-driven repayment plans.” The settlement will require court approval.

“Navient promised to help struggling borrowers find the repayment options that worked best for them, but instead steered borrowers into situations that pushed them deeper into debt,” said Healey. “Today’s settlement requires Navient to fix their mistakes, provides relief for families in Massachusetts and is an important step toward addressing our broken student loan repayment system.”

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