NJCA applauds New Jersey Attorney Generals Office for help in getting $60 million in relief to student loan borrowers

January 13th, 2022

New Jersey Citizen Action Financial Justice Program Director Beverly Brown Ruggia issued the following statement today. 

“NJCA applauds the New Jersey Attorney General’s office for their persistent efforts to hold student loan service companies like Navient Corporation accountable for deceptive and misleading tactics. Thanks to the New Jersey Attorney General and its Division of Consumer Affairs, thousands of New Jerseyans will receive more than $60 million in loan cancellations and restitution payments as part of a $1.85 billion  nationwide lawsuit settlement with Navient. 

“New Jersey was one the few states that participated in the lawsuit against loan servicer Navient. Our nation is grappling with a $1.7 trillion student debt crisis which Navient has helped create by :

  • Steering  borrowers into forbearance instead of income-driven repayment plans better suited to their financial circumstances.
  • Failing to inform borrowers of deadlines to re-certify their eligibility for certain income-driven repayment plans and misleading borrowers about the amount of their delinquency.
  • Enticing borrowers to take out private student loans with a co-signer, and then making it exceedingly difficult to obtain a co-signer release.

“We thank the New Jersey Attorney General’s office and look forward to continue  working with them to protect student loan borrowers and consumers from companies like Navient.”