After years of struggling to make payments that hardly put a dent in the loans she took out to attend a now defunct arts school, Victoria Linssen saw a glimmer of hope. A deal last month between 39 states and Navient, a student lending giant accused of unfairly ensnaring borrowers like her, would wipe away $1.7 billion in private student loans.
Then she read the fine print: People like her who made their payments on time were disqualified from the relief.
And, the article continues:
Both Navient and the states have called the settlement a win: Navient did not acknowledge wrongdoing and avoided lengthy court battles, while the prosecutors trumpeted the $1.7 billion in forgiven debt.
But Navient never expected to be repaid much of that money. The true value of the debt it forgave, the company told its investors, was just $50 million.
And Navient didn’t have to compensate borrowers who stayed current on their payments. They will have to keep paying Navient, often for a decade or more, for private loans that state officials said should never have been made.