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Here's how much Georgia will get as part of the Navient student loan settlement

The settlement resolves claims about predatory student loan practices by Navient.

ATLANTA — Georgia Attorney General Chris Carr said Friday that the state was part of the coalition that had reached a settlement with loan servicing company Navient over predatory student loan practices.

The attorney general said that out of the $1.85 billion to be divided among 38 states as part of the settlement, Georgia borrowers would see $118 million.

According to Carr's office, that will involve canceling around $113 million in private student loan debt for nearly 4,300 Georgia borrowers, and paying $5.9 million to the state for more than 22,000 Georgia federal loan borrowers.

The settlement, according to the attorney general, "resolves claims that since 2009, Navient steered struggling student loan borrowers into costly long-term forbearances instead of counseling them about the benefits of more income-driven repayment plans."

RELATED: No, the Navient settlement doesn’t cancel loans for federal student borrowers

The forbearance plans, the attorneys general who reached the settlement with Navient said, "added to the borrowers' loan balances, pushing borrowers further into debt."

Forbearance is an option for borrowers where they are given a period of time where they don't have to make payments on their loans, but interest still builds up.

“For years, Georgians who turned to Navient for help with repaying their student loans saw their debt worsen rather than improve due to the company’s deceptive practices,” Carr said in a statement. “By reaching this settlement, Georgia borrowers will receive much-needed relief totaling more than $118 million as they work to regain their financial footing. We are proud of this announcement and hope it serves as a reminder that we will pursue servicers that unfairly take advantage of those struggling with student loan debt."

The coalition of attorneys general also alleged that Navient had created "predatory subprime private loans" to students attending for-profit schools that had low graduation rates or poor career placement records, meaning a "very high percentage of such borrowers would be unable to repay the loans."

The overall settlement requires Navient to cancel more than $1.7 billion in subprime private loan balances for more than 66,000 borrowers across the country, according to Carr's office.

The attorney general passed along this information about who may or may not qualify to receive payments under the settlement:

Borrowers receiving private loan debt cancellation under the settlement will receive a notice from Navient by July 2022, along with refunds of any payments made on the cancelled private loans after June 30, 2021. Federal loan borrowers who are eligible for a restitution payment of approximately $260 will receive a postcard in the mail from the settlement administrator later this spring. Federal loan borrowers who qualify for relief under this settlement do not need to take any action except to update or create their studentaid.gov account to ensure the U.S. Department of Education has their current address. For more information, visit www.NavientAGSettlement.com.