RyeCity REVIEW THE
January 21, 2022 | Vol. 10, Number 3 | www.ryecityreview.com
AG James secures $1.85B from Navient
Solid start! Reece Dorfman fires a puck on net against John Jay on Jan. 15, 2022. Dorfman scored a goal in the Garnets’ ninth win of the season. For story, see page 16. Photo/Mike Smith
Westchester holds donations for Bronx families impacted by fire Westchester County Executive George Latimer is commending county employees for coming together to donate what they can to help Bronx families impacted by Sunday’s devastating and deadly fire that claimed the lives of 17 people, including eight children. “We are grieving with our brothers and sisters in the Bronx. For years Westchester has had a strong connection to the Bronx and that link is undeniable,” Latimer said. “It is our duty to give back and help our neighbors who
have lost so much. We want to help them heal, rebuild and let them know we are here for them. Our hearts are with the survivors and the families left behind as we share in this loss.” Assistant County Attorney Irma Cosgriff approached the county executive about setting up a donation drive to help the families after hearing of the tragedy. “I had an overwhelming sense of sadness for the individuals and families affected by this tragedy
and wanted to do something to help,” Cosgriff said. “We want to provide an easy and trusted way for County employees’ donations to be most effective. This is about us doing something.” A donation box at Michaelian Office Building at 148 Martine Ave., in White Plains has been set up to receive donations beginning Friday, Jan. 14 through Jan. 21. Employees are asked to place their donations in large transportable plastic bags. The items will be donated to P.S. 85 Great Ex-
pectations School, where many of the children impacted by this fire, attended. Essential items needed include: bottled water, pillows, blankets, non-perishable food, sanitizer, toiletries, feminine hygiene products, pet products, new and unworn clothing (sweatpants, sweatshirts, undershirts, socks, kids and adultsized underwear, kids and adultsized pajamas), diapers and baby items and unused bedding. (Submitted)
New York Attorney General Letitia James announced on Jan. 14, a $1.85 billion agreement with one of the nation’s largest student loan servicers, Navient, after it deceived thousands of student loan borrowers into costly, long term, forbearance plans, causing students to pay more than they should have. A bipartisan coalition of 39 attorneys general negotiated the multistate agreement that cancels $1.7 billion in private student loan debt and recovers $95 million in restitution for thousands of students nationwide. “For too long, Navient contributed to the national student debt crisis by deceptively trapping thousands of students into more debt,” said James. “Today’s billion-dollar agreement will bring relief to thousands of borrowers in New York and across the nation and help them get back on their feet. Navient will no longer be able to line its pockets at the expense of students who are trying to earn a college degree. Student loan servicers that operate through deception and wrongdoing will not be tolerated and will be held accountable by my office.” A multistate investigation into Navient found that, since 2009, the company has been steering struggling student loan borrowers into costly, long-term forbearances instead of counseling them about the benefits of more affordable income-driven repayment plans. The interest that accrued because of Navient’s forbearance steering practices was added to the borrowers’ loan balances, pushing students further in debt. Had the company instead provided borrowers with the help it promised, income-driven repayment plans could have reduced payments to as low as $0 per month, provided interest subsidies, and/or helped attain forgiveness of any remaining balance after 20 to 25 years of
qualifying payments (or 10 years for borrowers qualified under the Public Service Loan Forgiveness Program). The investigation found that Navient also provided predatory, subprime, private loans to students attending for-profit schools and colleges with low graduation rates, although the company knew that a very high percentage of those borrowers would be unable to repay the loans. Navient allegedly made these risky subprime loans as “an inducement to get schools to use Navient as a preferred lender” for highly profitable federal and “prime” private loans, without regard for borrowers and their families, many of whom it unknowingly ensnared in debts they could never repay. Under the terms of the agreement, Navient will cancel the remaining balance on nearly $1.7 billion in subprime, private student loan balances owed by nearly 66,000 borrowers nationwide. Additionally, a total of $95 million in restitution payments, of about $260 each, will be distributed to approximately 350,000 federal loan borrowers who were placed in certain types of longterm forbearances. Borrowers who will receive restitution or debt cancellation span all generations, as Navient’s harmful conduct impacted everyone from students who enrolled in colleges and universities immediately after high school to mid-career students who dropped out after enrolling in a for-profit school in the early to mid-2000s. Navient will also be forced pay $142.5 million to the states as part of this agreement. New York will specifically receive a total of about $6.8 million in restitution payments for more than 25,000 federal loan borrowers. Additionally, about 4,300 New York borrowers will receive over $110 million in private loan JAMES continued on page 4