MISSOULA, Mont. – One of the largest student loan companies, Navient has reached a settlement agreement in which it will now have to reduce or eliminate student loan debt for more than 400,000 borrowers. Adding up to nearly $2 billion.

It comes as attorneys general in other states say Navient engaged in unfair practices and issued predatory loans to students who were unlikely to work to repay them.

About 350,000 federal borrowers will get about $260 each, totaling $95 million in restitution. In addition to canceling the remaining balances of 66,000 private student loan borrowers.

Although Navient recently amended its contracts to no longer service federal loans, many borrowers wonder if this lawsuit will affect them directly. Student loan expert Andrew shared what this means for borrowers in Montana.

“Navient is one of those companies that exited its contract and the federal lending industry as a whole at the end of 20-21, if you’ve been served by Navient you’ve probably heard the Department of Education and your new repairer on how you will resume those payments,” Pentis said.

At this time, if you have been notified of the lawsuit or changes to your lending company. Repayment options remain the same for private and federal borrowers.

If you are still unsure whether your loans have been affected by the lawsuit settlement…we encourage you to contact your lender to find out what payment relief options are available at this time.