BETHLEM, Pennsylvania | ARM Lawyers, with offices in Bethlehem, Palmerton and Stroudsburg, receives many calls from people curious about whether they are covered by the Navient settlement.
Earlier this month, the Pennsylvania Attorney General announced that the lending service provider would provide a total of $1.85 billion to resolve allegations of predatory practices.
People with low credit scores were reportedly targeted. The lawsuit involved 39 attorneys general.
Now, nearly 66,000 private borrowers across the country are expected to have their balances forgiven.
“You must have attended a for-profit school listed in the regulations, and a list is available,” said attorney Patrick Best of ARM Lawyers. The site is referenced here.
“You can see if your school was on the list. It had to be between 2002 and 2014. Your credit score had to be below 670,” he added.
About 350,000 federal borrowers will receive $260 in restitution payments for being placed in long-term forbearances.
“If you’re eligible and your address is updated, you’ll be notified directly, so you don’t really have to take any further action,” Best said. “If you’re not covered by the settlement and need to do something to manage your student loans, there are resources to help you.”
This includes discussing income-based repayment plans with federal loan managers.
“You can apply for utility service, loan forgiveness, or perhaps full and permanent disability forgiveness,” Best noted. “If you have private loans there may also be other options for you. They are governed by a whole different set of laws so you will need to speak to a lawyer to see if there is anything available for you. you.”
Best says that as long as the settlement is approved by the court, people will be told what they will get over the next two months.