NEWSLETTERS
SUBSCRIBE
Colorado Politics

Print Edition

Log in
My Account
Log in
Subscribe
My Account
Log in

Thousands of Colorado student loan borrowers to get restitution under Navient settlement

By CECILIA TIMBERG 08/01/2022 | updated 3 years ago

Thousands of student loan borrowers will get a few hundred dollars in the mail or see their loans forgiven under a settlement that Colorado’s attorney general reached with one of America’s largest student debt service providers.

Nearly 7,000 borrowers will get $260 in checks, which could start arriving this week. The settlement also wipes out the student debt of about 1,300 Coloradans, according to the Attorney General’s Office.

The restitution and loan forgiveness are part of a $1.85 billion settlement that a bipartisan coalition of 39 attorneys general secured with Naviant, which they accused of predatory loan services. Notably, the company steered students into expensive, long-term loans instead of offering income-driven repayment options, Attorney General Phil Weiser said in a statement.

Geography no barrier as rural colleges in Colorado expand online offerings

“Navient’s predatory lending put many Coloradans in stressful financial situations and acted in ways that threatened long-term negative consequences,” Weiser said.

Naviant denied violating any laws.

“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,” Mark Heleen, Navient’s chief legal officer, said in a January statement.

Report outlines pandemic impacts on Colorado students heading to college

Under the settlement, Colorado also will get $650,000 from Naviant, which will help fund efforts to protect student borrowers, Weiser’s office said.

Weiser said the checks should be cashed or deposited within 90 days.

Five takeaways from Jefferson County schools data

In this Oct. 7, 2019 Associated Press file photo, Colorado Attorney General Phil Weiser speaks during a news conference in Denver.
Associated Press file photo
Tags
CECILIA TIMBERG

Reporter

PREV

PREVIOUS

10th Circuit upholds jury verdict for Xcel Energy in discrimination lawsuit

The federal appeals court based in Denver has upheld a jury’s verdict finding Xcel Energy did not discriminate against a former worker on the basis of her race and sex by failing to promote her. A three-judge panel of the U.S. Court of Appeals for the 10th Circuit reviewed a narrow aspect of the case: […]

NEXT

NEXT UP

Appeals court warns police to use lights and sirens or lose immunity for crashes

The town of Olathe and one of its officers can be held liable for the collision deaths of two men in 2018, stemming from the officer’s failure to use his lights and sirens for the majority of his high-speed pursuit. In reversing a lower court judge’s decision to dismiss the civil lawsuit against Olathe, a […]
Welcome Back.

Streak: 9 days i

Stories you've missed since your last login:

Stories you've saved for later:

Recommended stories based on your interests:

Edit my interests