Thousands of Connecticut residents with student loans will be getting cash payments for debt relief.
That's as a result of a $2 billion settlement with the student loan company, Navient.
Over 1,300 borrowers will receive $19 million in private loan debt relief, and close to 5,000 borrowers will get $1.3 million in restitution.
Thirty-nine state attorneys general, including Connecticut AG William Tong, negotiated the agreement. They claim since 2009 Navient has been using deceptive practices, steering struggling students into costly, long-term repayment plans.
Tong called the settlement a “massive victory for borrowers, but there’s still a lot of work ahead.” He said Connecticut residents owe billions in student loans, making it difficult for many to purchase a home or start a family.
