In 2022, Navient settled with 39 state attorneys general, agreeing to cancel $1.7 billion in student loan debt and pay $142.5 million to resolve claims of predatory lending practices.
Transition Away from Federal Student Loan Servicing
Navient had already begun stepping away from federal student loan servicing, transferring its government loan contracts to a third party in 2021. In July 2024, the company reached another agreement to outsource the servicing of FFELP student loan portfolios.
