Loan Cancellation (For Some)

To view this email as a web page, click here.

ICYMI: Navient forced to cancel $1.7B in student loan debt

In case you missed it, more than a billion dollars of student loans were canceled this week—not by the president (I'm still waiting for him to make good on his student loan cancellation promise) but by the student loan company Navient, formerly known as Sallie Mae.

As part of a settlement made with 38 states and Washington, D.C., Navient was forced to cancel $1.7 billion in student loans and pay more than $95 million in restitution and other fees due to allegations that Navient engaged in "widespread unfair, deceptive, and abusive student loan servicing practices." Pennsylvania Attorney General Josh Shapiro also alleged the student loan servicer was providing "predatory" student loans.

Navient didn't admit any guilt as part of the settlement, and in a statement called the allegations "unfounded." The company wiped the slate clean for roughly 66,000 borrowers with private education loans who defaulted on paying them.

- Kristin

Editors' Picks

Settlement Erases Debt for 66,000 Student Borrowers (The Balance)

Types of Continuing Education to Advance Your Career (The Balance Careers)

What Is a Private Student Loan? (The Balance)

Off the Charts

Tax season is just around the corner, and your effective tax rate is the percentage of your overall taxable income that you pay in taxes. "Effective" is a tax way of saying "average," and this rate is usually considerably less than your marginal tax rate, which is hinged to your highest tax bracket.

The chart below shows the effective tax rate by income for single individuals for the 2021 tax year, the tax return you'll file in 2022.

SPONSORED BY DISCOVER PERSONAL LOANS

The Ins and Outs of Debt Consolidation

Debt is one of the biggest financial challenges Americans face. Find out what you can do to reduce debt and take charge of your finances. LEARN MORE >

More From The Balance

Real Estate Taxes vs. Property Taxes

Real estate taxes, often referred to as "property taxes," aren't the same as personal property taxes. Confused? Learn how these taxes work and why they matter.

READ MORE >

IRS To Begin Accepting Tax Returns on Jan. 24

Tax season will open on Monday, Jan. 24, when the IRS begins accepting and processing returns from individual filers for the 2021 tax year, the bureau announced.

READ MORE >

The IRS Is Sending You Mail This Tax Season

The IRS said it has started sending letters to taxpayers with details of government payments made during the pandemic. Don't throw them out, the agency said.

READ MORE >