Florida Will Receive $199 Million in the Navient Settlement
Last week, Florida Attorney General Ashley Moody announced she and other state attorneys general secured $1.85 billion from one of the nation’s largest student loan servicers for misrepresenting to borrowers the best repayment options available.
Moody was joined by a coalition of 39 state attorneys general in a multistate action against Navient, formerly d/b/a Sallie Mae. In the proposed consent judgment, Navient will provide relief totaling $1.85 billion to resolve allegations of widespread unfair and deceptive student loan servicing practices and abuses in originating predatory student loans. Florida will receive more than $199 million in relief from the multistate action.
“Despite promising to help find the best loan repayment option, this company steered distressed borrowers to costly long-term forbearances—pushing them further into debt and financial hardship. Due to our multistate investigation and aggressive negotiations, this company’s predatory lending practices are now at an end, and Floridians harmed will receive millions of dollars in restitution,” Moody said.
