Consumer Protection Commissioner Michelle Seagull said the settlement will help many who are struggling to pay off loans.
By Hugh McQuaid, CTNewsJunkie.com
Thousands of Connecticut student loan borrowers will receive some restitution under a multistate settlement with Navient, a loan servicer accused of predatory lending practices, Attorney General William Tong announced Thursday.
Tong, along with attorneys general in 38 other states, reached a $1.85 billion settlement with the loan-servicing company addressing allegations that it directed struggling borrowers into high-priced forbearances rather than cheaper plans since 2009.
Here in Connecticut, $19 million will be directed to helping more than 1,300 borrowers, another $1.3 million will fund restitution to 4,875 borrowers, and $141,000 will be deposited in the state’s General Fund.
In a press release, Tong called the settlement a “massive victory for borrowers.”
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