Product: Student loan

I live in Kansas, XXXX gave me student loans when I had a XXXX credit score knowing I couldnt repay for a XXXX college. I have been in delinquency for years! 39 State Attorneys General Announce {$1.00} XXXX  Settlement with Student Loan Servicer XXXX  Settlement includes {$1.00} XXXX  in debt cancellation and {$95.00} XXXX  in restitution Thursday, XX/XX/XXXX 39 state Attorneys General announced today that XXXX, known as one of the nations largest student loan servicers, will provide relief totaling {$1.00} XXXX to resolve allegations of widespread unfair and deceptive student loan servicing practices and abuses in originating predatory student loans. 

This settlement resolves claims that since XXXX, despite representing that it would help borrowers find the best repayment options for them, XXXX steered struggling student loan borrowers into costly long-term forbearances instead of counseling them about the benefits of more affordable income-driven repayment plans. 

According to the attorneys general, the interest that accrued because of XXXX forbearance steering practices was added to the borrowers loan balances, pushing borrowers further in debt. Had the company instead provided borrowers with the help it promised, income-driven repayment plans could have potentially reduced payments to as low as {$0.00} per month, provided interest subsidies, and/or helped attain forgiveness of any remaining balance after 20-25 years of qualifying payments ( or 10 years for borrowers qualified under the Public Service Loan Forgiveness Program ) . 

XXXX also allegedly originated predatory subprime private loans to students attending for-profit schools and colleges with low graduation rates, even though it knew that a very high percentage of such borrowers would be unable to repay the loans. XXXX allegedly made these risky subprime loans as an inducement to get schools to use XXXX as a preferred lender for highly-profitable federal and prime private loans, without regard for borrowers and their families, many of whom were unknowingly ensnared in debts they could never repay. 
Under the terms of the settlement, XXXX will cancel the remaining balance on {$1.00} billion in subprime private student loan balances owed by more than 66,000 borrowers nationwide. In addition, XXXX will pay {$140.00} million to the attorneys general. A total of {$95.00} million in restitution payments of about {$260.00} each will be distributed to approximately XXXX federal loan borrowers who were placed in certain types of long-term forbearances. Borrowers who will receive restitution or debt cancellation span all generations : XXXX harmful conduct impacted everyone from students who enrolled in colleges and universities immediately after high school to mid-career students who dropped out after enrolling in a for-profit school in the early to mid-XXXX. 

The settlement includes conduct reforms that require XXXX to explain the benefits of income-driven repayment plans and to offer to estimate income-driven payment amounts before placing borrowers into optional forbearances. Additionally, XXXX must train specialists who will advise distressed borrowers concerning alternative repayment options and counsel public service workers concerning Public Service Loan Forgiveness ( PSLF ) and related programs. The conduct reforms imposed by the settlement include prohibitions on compensating customer service agents in a manner that incentivizes them to minimize time spent counseling borrowers. 

The settlement also requires XXXX  to notify borrowers about the U.S. Department of Educations recently announced PSLF limited waiver opportunity, which temporarily offers millions of qualifying public service workers the chance to have previously nonqualifying repayment periods counted toward loan forgivenessprovided that they consolidate into the Direct Loan Program and file employment certifications by XX/XX/XXXX. 

As a result of todays settlement, borrowers receiving private loan debt cancellation will receive a notice from XXXX by XX/XX/XXXX, along with refunds of any payments made on the cancelled private loans after XX/XX/XXXX. Federal loan borrowers who are eligible for a restitution payment of approximately {$260.00} will receive a postcard in the mail from the settlement administrator later this spring.

Federal loan borrowers who qualify for relief under this settlement do not need to take any action except update or create their studentaid.gov account to ensure that the U.S. Department of Education has their current address. 

Until recently, XXXX had a contract to service federal student loans owned by the U.S. Department of Education, including a large portfolio of loans made under the Direct Loan Program and a smaller portfolio of loans made under the Federal Family Education Loan ( FFEL ) program. On XX/XX/XXXX, the U.S. Department of Education announced the transfer of this contract from XXXX to Aidvantage, a division of Maximus Federal Services , Inc. However, XXXX will continue to service federal student loans made under the FFEL Program that are owned by private lenders, as well as non-federal private student loans. 

The settlement was led by Pennsylvania, Washington, Illinois, Massachusetts, and California, and was joined by attorneys general in Arizona, Arkansas, Colorado, Connecticut, the District of Columbia, Delaware, Florida, Georgia, Hawaii, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Missouri, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oregon, Rhode Island, South Carolina, Tennessee, Vermont, Virginia, West Virginia, Vermont, and Wisconsin.