United States: Student loan officer settles predatory loan claims
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A student loan officer has reached a settlement with 39 state attorneys general, resolving claims of unfair and predatory lending practices.
The New York attorney general’s office alleged that the company steered borrowers toward expensive and burdensome loan agreements instead of more affordable repayment plans. The agreement includes the cancellation of approximately $1.7 billion in loans and the payment of $95 million in restitution. In addition, the company adopts a series of future loan servicing reforms.
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