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Student lender Navient cancels $1.7B in student loans

Goldhedge

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who'd a thunk it?

Student lender Navient cancels $1.7B in student loans​

Navient did not admit to any wrongdoing as part of the agreement

Student lender Navient has announced that it has canceled over $1.7 billion in student loans as part of an agreement to settle ongoing litigation with various states attorneys general.

States attorneys general accused Navient of engaging in "deceptive and abusive practices, targeted students who it knew would struggle to pay loans back, and placed an unfair burden on people trying to improve their lives through education."

The agreement, announced Thursday following over four years of litigation, does not include any admission of guilt on the part of Navient. The company "expressly denies violating any law, including consumer-protection laws, or causing borrower harm."

The deal includes an agreement to cancel student loans for approximately 66,000 borrowers across 36 states and Washington, D.C. with loans from between 2002 and 2010 that "later defaulted charged off."

The total sum of those cancellations will total over $1.7 billion, with most of the amount already charged off, the company claimed.

The company will also pay around $142.5 million in other penalties to a further 350,000 borrowers. It will also need to advise borrowers more clearly on their options and repayment plans.

"The company’s decision to resolve these matters, which were based on unfounded claims, allows us to avoid the additional burden, expense, time and distraction to prevail in court," said Navient’s Chief Legal Officer Mark Heleen.

But Massachusetts Attorney General Maura Healey hailed the settlement as "an important step towards addressing our broken student loan repayment system."

Navient will contact affected borrowers once it receives court approval on the deal.


 

the_shootist

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Won't the students who had their loans canceled, now have to declare it on their taxes as income, and pay tax on it?
They certainly should. That sheepskin in Gender Studies is still worth a ton of dough last I looked at the faggot progressive news
 

the_shootist

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I would guess yes. Forgiveness of debt is a taxable event.
Good!
1642198916625.png
 

hammerhead

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Won't the students who had their loans canceled, now have to declare it on their taxes as income, and pay tax on it?
Not necessarily. There is the federal tax aspect and the state tax. Either/or, one or the other or neither could apply.
 

andial

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Where these loans directed at a particular demographic including race and locale?
 

edsl48

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Won't the students who had their loans canceled, now have to declare it on their taxes as income, and pay tax on it?
That's a laugh
To them they are entitled to it
However maybe this would qualify for the earned incom tax credit
More free money for themon the way
 

Agavegirl1

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Cancellation of debt is a taxable event that can be mitigated up to the level of insolvency prior to the cancellation. An insolvency worksheet needs to be prepared as well as an additional tax form in order to qualify for this.
 

Treasure Searcher

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Won't the students who had their loans canceled, now have to declare it on their taxes as income, and pay tax on it?
They better get their 1099. Probably be a surprise, when that shows up.
 

Goldhedge

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Buck

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forgiving any debt isn't the worst this has produced:

part of an agreement to settle ongoing litigation
Lady Justice gets raped again...there is no Law coming from any of this

they'll be able to do this again and again and again, just give it a few years and be certain to call the new program something else...


how does that saying go? make a billion dollars in a fraudulent manner and get caught, pay a million in a settled restitution and go home, count your profits...

the house always wins