More than 400 Kansans will receive nearly $10 million in student loan relief as part of a nationwide settlement with one of the country’s largest student loan servicers.

 

According to Kansas Attorney General Derek Schmidt, this is a settlement between Navient and a coalition of 39 attorneys general, including the District of Columbia that alleges the student loan servicer of collusion and fraud with for-profit colleges.

 

Under the terms of the settlement, Navient will cancel the remaining balance on more than $1.6 billion in subprime private student loan balances owed by approximately 62,000 borrowers nationwide. In Kansas, 435 borrowers will see $10.282 million in loan balances canceled.

 

The settlement also requires Navient to explain the benefits of income-driven repayment plans and to offer to estimate income-driven payment amounts before placing borrowers into optional forbearances.