FOR IMMEDIATE RELEASE
CONTACT: Brendan Rooks
Statement: Navient settlement erases $1.7 billion in private student loans, advocates urge Biden to cancel debt for all
Today, student loan servicing company Navient settled multiple state lawsuits with an agreement to cancel $1.7 billion in private student loan debt for 66,000 people with private student loans. While the deal holds the company to account for years of abusive business practices, it falls far short of comprehensive, serious relief for millions more with federal student loans whose lives were destroyed by the company.
To put an end to the pain and suffering that student loan companies inflict, and to fully address the wounds caused by America’s broken student loan system, President Biden must cancel student debt immediately by executive action.
“We are thrilled for the thousands of private student loan borrowers who will receive justice in the form of student debt cancellation with this settlement. For them, this is a clear victory. However, we are frustrated that federal student loan borrowers are left crushed by debt despite Navient’s obvious track record of abuse,” said Cody Hounanian, executive director of the Student Debt Crisis Center.“Navient's illegal behavior is not the exception, it is the rule. For decades private student loan companies shamelessly preyed on low-income borrowers, disabled veterans, seniors, and other vulnerable communities to expand their profits. The predatory student loan industry’s actions harmed a generation's hopes of a better future, widened the racial wealth gap, and stole the American dream in exchange for profits. Today’s announcement is a step in the right direction, but more must be done.”