Navient Student Loan Bankruptcy Class Action Settlement Approved

Navient Corp. and thousands of student loan borrowers won a Nebraska bankruptcy court’s approval of their settlement to end claims that the loan servicer attempted to collect on debt that was wiped out in bankruptcy.

Under the agreement, Navient will cease efforts to collect on about $54 million worth of private student loans that were subject to discharge. One of the nation’s largest student debt servicers, Navient also will pay up to $28 million in damages, which will be used to partially refund borrowers who continued to pay back those loans after going through bankruptcy.

The settlement, preliminarily approved ...