Illinois Attorney General Kwame Raoul is announcing a nationwide settlement with one of the largest student lenders in the country.
Navient has agreed to pay 1.85-billion dollars over allegations that the company, previously operating as Sallie Mae, steered student borrowers towards predatory loans. The loans were for tuition at for-profit colleges says Attorney General Raoul.
“Wherever the student attended, Navient’s private student loan program lured students into debt by targeting those unlikely to be able to repay with high interest loans. High interest private loans like these are an ongoing problem.”
Illinois’ share is over $145-million, with more than 18,000 borrowers set to receive payouts of about $260 each. A postcard notification will be sent to those eligible this spring. Another 5,000 plus borrowers in Illinois will have their debt cancelled.
