AG Ferguson lawsuit nets $45M in debt relief, payments from Navient

Attorney General Bob Ferguson

Attorney General Bob Ferguson announced that, as a result of his lawsuit, student loan servicer Navient will provide nearly $45 million in debt relief, restitution and costs to resolve Washington’s lawsuit. 

Ferguson asserted Navient, the Sallie Mae offshoot that was then the nation’s largest student loan servicer, engaged in numerous unfair and deceptive practices harming Washington student loan borrowers.

Washington was the first state, along with Illinois, to file a lawsuit against Navient, and the first to obtain a judgment stating Navient broke the law.

The student loan giant will:

• Extend more than $35 million in debt relief, erasing the remaining debt of more than 1,400 Washingtonians who took out certain private student loans between 2002 and 2014 — an average of about $25,000 per person;
• Pay $2.3 million in restitution to approximately 8,900 Washington borrowers enrolled in forbearance for an extended period of time between 2009 and 2017; and
• Pay $7 million to Washington to cover costs from the complex, multiyear investigation and litigation, along with future enforcement of the state’s Consumer Protection Act.Washingtonians do not need to take any action to receive these benefits. Borrowers receiving private loan debt cancellation will receive a notice from Navient, and they will receive refunds of any payments made on those loans after June 30, 2021. Washingtonians who are eligible for a restitution payment will receive a postcard in the mail from the Attorney General’s settlement administrator in the next several months. Federal student loan borrowers who may be eligible for a restitution payment are encouraged to update their contact information in their studentaid.gov account or create an account if they do not already have one.

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For more details and the most up-to-date information, please visit www.NavientAGSettlement.com.