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More than 400,000 student loan borrowers will get debt relief from Navient

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(CNN) — More than 400,000 student loan borrowers will get some debt relief from Navient, according to a $1.85 billion settlement agreement announced Thursday.

The deal will settle litigation brought by several state attorneys general that claimed that Navient, one of the largest student loan servicing companies in the US, engaged in unfair practices and made predatory loans to students who were unlikely to be able to pay them back.

About 350,000 federal student loan borrowers whom Navient placed in long-term forbearance — which allowed them to temporarily stop making payments — will receive about $260 each, totaling $95 million in restitution.

Additionally, Navient must fully cancel the remaining balances of private loans borrowed by about 66,000 students, totaling $1.7 billion. Those loans were largely made between 2002 and 2010.

“Navient knew that people relied on their loans to make a better life for themselves and for their children and instead of helping them, they ran a multibillion dollar scam,” said Pennsylvania Attorney General Josh Shapiro at a press conference Thursday. He co-led the litigation with attorneys general from Washington, Illinois, Massachusetts, and California.

The state attorneys general claimed that Navient steered federal student loan borrowers into forbearance rather than directing them to enroll in low-cost repayment plans. As a result, some of these borrowers fell deeper into debt as interest accrued.

The lawsuit also alleges that Navient made private loans to students attending for-profit schools and colleges with low graduation rates, even though it knew that a high percentage of those borrowers would be unable to repay the loans.

Navient denied violating any law in the settlement.

“The company’s decision to resolve these matters, which were based on unfounded claims, allows us to avoid the additional burden, expense, time and distraction to prevail in court,” Navient’s chief legal officer Mark Heleen said in a statement.

Until recently, Navient had a contract with the US Department of Education to service federal student loans, but the company decided to end that contract late last year. Earlier this month, it transferred its federal student loan portfolio to a servicer called Aidvantage. Navient continues to originate private student loans.

The settlement covers borrowers who live in 38 states and Washington, DC. Those who qualify for relief under the settlement don’t need to take any action and can expect to automatically receive notification from Navient later this year after the court approves the agreement. Federal loan borrowers can update or create an online account with the Department of Education to ensure the agency has their current address.

The-CNN-Wire™ & © 2021 Cable News Network, Inc., a Time Warner Company. All rights reserved.

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Fired Former Miami Police Chief Art Acevedo Files Lawsuit Against City, Commissioners, City Manager

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MIAMI (CBSMiami) – Three months after he was fired, former Miami Police Chief Art Acevedo is taking legal action against the City of Miami.

On Wednesday, Acevedo filed a 50-page lawsuit claiming the city manager and three commissioners violated his First Amendment rights.

READ MORE: London-Bound American Airlines Flight Returned To MIA After Passenger Refused To Wear A Mask

Acevedo claims they illegally retaliated against him for blowing the whistle on, what he describes as, a toxic stew of corruption and wrongdoing at city hall.

That includes City Manager Art Noriega and Commissioners Joe Carollo, Alex Díaz de la Portilla, and Manolo Reyes.

The complaint details several examples of alleged illegal and unethical activity by commissioners, saying they attempted to “weaponize” Miami police officers against their enemies.

WATCH: Deborah Souverains Report On Art Acevedo’s Lawsuit

Acevedo said his firing after only being on the job six months was retribution for trying to maintain his independence as police chief.

It claims those commissioners “targeted Chief Acevedo because of his resistance to their efforts to use the MPD to carry out their personal agendas and vendettas, his reform efforts, and his speaking out against corruption and abuse of power by the City of Miami Commission.”

The new lawsuit alleges Commissioner Carollo demanded Acevedo investigate multiple businesses of his political opponent on allegations Acevedo says were unfounded

It also claims the commissioners interfered in an investigation into a Miami Sergeant-at-Arms, accused of a security breach.

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The lawsuit further says commissioners pushed back against Acevedo’s efforts to combat excessive use of force and their alleged cover-ups.

The suit cites a specific instance where “a woman in police custody spit on an officer, the officer punched her in the face and drove her to the ground, causing her to lose consciousness.”

Back in September and October, Acevedo was the subject of criticism in a series of fiery commission meetings.  The concerns raised included a comment Acevedo made about the department being run by the “Cuban mafia,” his demoting of several police officers, and a Fraternal Order of Police survey which found 79% of those polled did not have confidence in Acevedo’s ability to run the department.

Commissioner Carollo even went so far as to criticize the size of Acevedo’s pants when he performed as Elvis for a charity fundraiser and made comments about if he was “wearing a jockstrap.”

Noriega released the following statement in response to the lawsuit:

“This was expected and I look forward to the opportunity to discredit these false claims made by the former Police Chief. It’s clearly an attempt to retaliate against the individuals that held him accountable for his own shortcomings as Miami Police Chief and to attempt to salvage his professional reputation by casting blame on others. I will leave it to our Law Department to address the complaint directly through the proper legal channels.”

Commissioner Manolo Reyes also issued a statement:

“It is extremely unfortunate that Mr. Acevedo has chosen to sue the city of Miami and its elected officials for his own shortcomings as a police chief. We look forward to handling this matter in court. More so, at no time did I give Mr. Acevedo a list of restaurants and bars to investigate. Nor did I give him any directive regarding an internal affairs investigation.

We will all have our day in court.”

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Commissioner Carollo could not be reached for comment.

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London-Bound American Airlines Flight Returned To MIA After Passenger Refused To Wear A Mask

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MIAMI (CBSMiami) – An American Airlines London bound flight from Miami was forced to turn around Wednesday night after a passenger refused to wear a mask.

Flight 38 was about an hour and a half into its flight to Heathrow Airport when it circled back and returned to Miami International Airport.

READ MORE: Fired Former Miami Police Chief Art Acevedo Files Lawsuit Against City, Commissioners, City Manager

Police dispatch called for officers to meet the plane at Gate D14 because at least one passenger was not respecting the mask mandate. Once it landed, more than 100 passengers were informed they had to get off the plane.

Many on the plane had no idea why it returned to Miami.

“Disappointed. They wouldn’t really say anything and I don’t think they told the flight attendants anything because all they would say is there was an extreme incident and they had to turn around,” said one passenger.

READ MORE: COVID-19 Testing Site Finder

“They just told us to get off and the police were there,” said another passenger.

American Airlines issued a statement apologizing for the inconvenience.

“American Airlines flight 38 with service from Miami (MIA) to London (LHR) returned to MIA due to disruptive customer refusing to comply with the federal mask requirement. The flight landed at MIA where local law enforcement met the aircraft. We thank our crew for their professionalism and apologize to our customers for the inconvenience.”

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The flight was canceled as a result of the incident, leaving these flyers to seek alternate arrangements.

CBSMiami.com Team

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COVID-19 Testing Site Finder

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(Getty Images)

Miami-Dade County offers free testing for COVID-19 at drive-thru, walk-in and mobile sites.

CLICK HERE TO FIND A TESTING SITE NEAR YOU IN MIAMI-DADE.

Test site operations have expanded in Broward to meet increased demand.

CLICK HERE TO FIND A TESTING SITE NEAR YOU IN BROWARD.

In Monroe County, positive COVID-19 cases are significantly increasing as well.

CLICK HERE TO FIND A TESTING SITE NEAR YOU IN MONROE.

CBSMiami.com Team

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