290 Arkansas people will have $6.8 million in student loan debt forgiven as part of a nationwide settlement of a lawsuit by 39 states over student loan services by Navient.
Navient was accused of steering students to predatory loans, creating big debts for many of them that kept growing with added interest.
Attorney General Leslie Rutledge, who announced Arkansas’s share of $1.85 billion in forgiven loans, said Navient originated loans to students at for-profit schools and colleges with low graduation rates knowing recipients would be unable to repay. Navient used these loans to induce the schools to use them to service profitable federal and prime private loans.
In addition to loan forgiveness, recipients of certain federal loans will qualify for a $260 restitution payment. State attorneys in the case will share in $142 million from Navient.