Navient Ordered to Stop Collections on Discharged Student Loans

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A bankruptcy judge ordered student loan servicer Navient Corp. to suspend its efforts to collect payments from borrowers of certain private student loans who filed for bankruptcy and whose debts were likely eligible for a discharge.

Judge Elizabeth Stong with the U.S. Bankruptcy Court in Brooklyn, N.Y., on Friday issued a nationwide injunction against Navient, accused by private-loan borrowers Hilal Homaidan and Reeham Youssef of improperly collecting on student loans that were discharged in bankruptcy.