COLORADO SPRINGS — Nearly 7,000 Coloradans will receive checks in the mail from a settlement earlier this year involving Navient, a student loan servicer that used widespread unfair, deceptive, and predatory loan servicing practices.
According to a press release from Attorney General Phil Weiser’s Office, a nationwide investigation by a bipartisan coalition of 39 attorneys general uncovered evidence that Navient steered struggling student loan borrowers into costly long-term debts instead of counseling them about the benefits of more affordable income-driven repayment plans.
As part of the settlement, more than 1,000 Coloradans will have their student loans forgiven, and nearly 7,000 will receive $260 in restitution from Navient. Borrowers can expect the checks to start arriving as early as the week of August 1.
“Protecting student loan borrowers is a top priority for my office,” said Attorney General Phil Weiser. “Navient’s predatory lending put many Coloradans in stressful financial situations and acted in ways that threatened long-term negative consequences. For those consumers that had to deal with these unfair practices, I am so sorry for their mistreatment and pleased that we can return some of the money.”
The settlement required that Navient cease its deceptive practices and notify borrowers about the U.S. Department of Education’s Public Service Loan Forgiveness limited waiver opportunity, which temporarily offers millions of qualifying public service workers the chance to have previously nonqualifying repayment periods counted toward loan forgiveness.
Borrowers receiving funds should look for a letter from the Colorado Office of the Attorney General with a check in the mail. The checks should be deposited or cashed quickly as they may expire and be voided after 90 days.
No one will ask recipients for their bank account information, date of birth, Social Security number, or any other personal information in exchange for their payment. Any such questions are indicators of fraud or a scam.
For more information about the settlement, consumers can visit NavientAGSettlement.com.