Navient Settles Predatory Student Loan Claims For $1.85B

Navient, a major student loan company, is involved in a $1.85 billion settlement due to lawsuits from several state attorneys general. They accused Navient of unfair practices and issuing predatory loans to students unlikely to repay. If approved by a federal court, the settlement will provide nearly 350,000 borrowers with $260 each, and cancel the remaining loan balances for 66,000 others.

What is the total amount involved in the Navient settlement?

• $1.5 billion

• $1.85 billion

• $2.5 billion

• $2 billion

Who sued Navient, accusing it of unfair practices?

• Federal government

• Individual borrowers

• State attorneys general

• Consumer protection agencies

What were the accusations against Navient?

• Misleading advertising

• Failing to provide loan statements

• Engaging in unfair practices and predatory lending

• Overcharging interest rates

How many borrowers are expected to receive financial compensation if the settlement is approved?

• 500,000

• 100,000

• 200,000

• 350,000

What will happen to the remaining loan balance of 66,000 people?

• It will accrue more interest

• It will be reduced by half

• It will be transferred to another lender

• It will be cancelled