Thousands of Connecticut student loan borrowers will receive cash payments as part of a $1.85 billion settlement the state has reached with Navient. In a joint statement with Consumer Protection Commissioner Michelle H. Seagull and Banking Commissioner Jorge Perez, Attorney General William Tong\u2019s office said Thursday the settlement was part of a coalition with 39 attorneys general, who allege the company engaged in \u201cunfair and deceptive\u201d student loan practices. \u201cStates claimed that since 2009, despite vowing to help borrowers find the best repayment options for them, Navient steered struggling student loan borrowers into costly long-term forbearances and away from more affordable income-driven repayment plans,\u201d the statement said. In a statement, Mark Heleen, Navient\u2019s chief legal officer, said the claims were unfounded and the company agreed to the settlement \u201cto avoid the additional burden, expense, time and distraction to prevail in court.\u201d \u201cNavient is and has been continually focused on helping student loan borrowers understand and select the right payment options to fit their needs,\u201d his statement said. \u201cIn fact, we\u2019ve driven up income-driven repayment plan enrollment and driven down default rates, and every year, hundreds of thousands of borrowers we support successfully pay off their student loans.\u201d Connecticut officials said 1,339 borrowers in the state will receive $19 million in private loan debt relief, while another 4,875 borrowers will receive almost $1.3 million in restitution. The state will also receive more than $141,000 from the settlement, which will be placed in the general fund. \u201cThis settlement will send millions of dollars directly to thousands of Connecticut borrowers who were deceived by Navient\u2019s abusive practices,\u201d Tong said in a statement, calling the settlement a \u201cmassive victory for borrowers.\u201d But the attorney general said the billions of dollars in student loans owed by Connecticut families remains an \u201cinsurmountable barrier\u201d for many, and pledged to continue working on the \u201cfinancial crisis\u201d brought about by the debt. Tong\u2019s office said he filed the settlement as a proposed stipulated judgment and complaint in State Superior Court on Thursday. It will require the court\u2019s approval. The states alleged that Navient pushed borrowers to forbearance options, where loan payments are temporarily paused or reduced, rather than income-based repayment plans. That meant that borrowers saw interest add up on their loan balances, rather than obtaining forgiveness, interest subsidies or low payment options.