California Attorney General Rob Bonta has announced a settlement with Navient, one of the nation's largest student loan companies.
Bonta says Navient steered borrowers into costly repayment plans and predatory loans.
"As a former student loan borrower myself, I know what it feels like to write painful triple digit or even quadruple digit checks every month," Bonta said. "But that tough feeling pales in comparison to what Navient's exploited borrowers felt when they were trapped by poor servicing conduct and into expensive loans that they couldn't afford."
Bonta says the settlement includes $11.5 million dollars in direct restitution for 43,000 California residents and about $261 million dollars in private debt cancellation.
The announcement was part of a nationwide settlement totaling nearly $2 billion dollars.
Consumers who are eligible for a restitution payment will get a postcard in the mail this spring from the Attorney General’s settlement administrator.