California AG Announces $1.7 Billion Multi-state Settlement of Student Loan Lawsuit (Including NM?)

Breaking: This Morning The California AG Released a Statement on Major Multi-state Student Loan Lawsuit Settlement – The Candle is in process of reaching out for a from statement New Mexico AG Hector Balderas.

The following is from the California Attorney General press release:

OAKLAND – California Attorney General Rob Bonta today announced a multistate settlement against Navient, one of the largest student loan servicers in the country, to resolve allegations of misconduct in the servicing and collection of federal student loans. The settlement includes $95 million in restitution for student loan borrowers and $1.7 billion in private student loan debt cancellation, including $11.5 million in direct restitution and approximately $261 million in debt cancellation for California borrowers. Many of these borrowers took out private student loans to attend exploitative for-profit schools with low graduation and job-placement rates. As part of the settlement, Navient will also be required to comply with significant injunctive terms governing its student loan servicing.

“Today’s settlement is a victory for student loan borrowers in California and in our sister states who were exploited by Navient and trapped by poor servicing conduct into expensive loans that they couldn’t afford,” said Attorney General Bonta. “Navient has been one the worst actors in the student loan servicing market, and this settlement is a step toward accountability, providing direct relief for many of our most vulnerable student borrowers. The broader fight, however, is far from over. There is a $1.7 trillion student loan debt crisis in this country – and we need decisive action from Congress and the Department of Education to solve it.”