Student loan processor Navient required to cancel $1.7 billion in student loans

A deal was reached with 39 states that will result in the cancellation of 1.7 billion private student loans.

The lender gave out loans to millions of borrowers who were unlikely to be able to repay them, according to the accusations. The agreements resolve all the state lawsuits against the company.

Private loans are not guaranteed by the federal government. The company will make a one-time payment to the states as part of the settlement.

Over 66,000 borrowers are expected to get their loans cleared.

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The student loan borrowers who had been forced to shoulder the burden of dangerous and predatory private student loans made by Sallie Mae and owned by Navient will finally be debt-free.

The company that preceded the one that is now called Navient was called Lexie Mae.

The company denied that it violated the law.

Mark Heleen, the chief legal officer of the company, said that the company's decision to resolve the matters allowed them to avoid additional burden, expense, time and distraction.

More Americans are taking out private student loans as the cost of higher education increases.

According to a recent report by the Student Borrower Protection Center, the private student loan market has grown by more than 70% over the last decade.

Americans owed more in private student loans by the end of the year than they did for past due medical debt.