California Reaches Settlement in Student Debt Lawsuit

rob-bonta
rob-bonta

FILE - California Attorney General Rob Bonta speaks at a news conference on Aug. 17, 2021 in Sacramento, Calif. In an effort to alleviate the state's affordable housing problem, on Wednesday Nov. 3, 2021, Bonta said he was creating a "strike force" of lawyers to focus on tenant protections and related issues. That includes added authority to file lawsuits if local government don't boost their housing supply. (AP Photo/Rich Pedroncelli, File)

California Attorney General Rob Bonta is announcing a settlement in a student debt lawsuit. Bonta’s office says student loan company Navient agreed to settle a multistate lawsuit over lending and collection policies. The settlement essentially cancels one-point-seven-billion dollars in student debt and offers 357-thousand California residents a small refund of 260 dollars. Navient was a key lender to those who attended for-profit colleges, some of which scammed students before going out of business.