5 Questions About the Navient Settlement

If you want student loan forgiveness, here are 5 questions about the Navient

paying off your student loans.

Here’s what you need to know.

Student loans

Here are 5 questions to ask if you want to know more about student loan forgiveness and the Navient settlement:

1. What student loan relief is available?

There are three main types of student loan relief available through the Navient settlement:

Federal student loans

Federal borrowers with a Navient student loan who were affected will each receive about $260. (How Federal Student Loans Will Change This Year). Student borrowers must have had a Navient student loan and resided in one of the following states (or military address) as of January 2017: Arizona, Colorado, Connecticut, Washington, DC, Delaware, Florida, Georgia, Hawaii, Iowa, Illinois . , Indiana, Kentucky, Louisiana, Massachusetts, Maryland, Maine, Minnesota, Missouri, Mississippi, North Carolina, Nebrasks, New Jersey, New Mexico, Nevada, New York, Ohio, Oregon, Pennsylvania, Tennessee, Virginia, Washington, and Wisconsin .

Private student loans

This is one of the rare occasions to obtain the cancellation of a private student loan. As part of the settlement, Navient will contact you if your private student loans have been canceled as part of a $1.7 billion student loan cancellation. To be eligible, your mailing address on file with Navient as of June 30, 2021 must be in one of the states listed above, Arkansas, Kansas, Michigan, Rhode Island, South Carolina, Vermont, West Virginia, or an address military.

Changing student loan practices

In addition to monetary compensation, Navient is required to end unfair and deceptive practices in student loan servicing and student loan collection.

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2. What are the requirements for obtaining student loan relief for federal borrowers?

  • You had to enter the repayment of a student loan on a Direct Loan or an FFELP student loan before January 2015.
  • You must have had at least one federal student loan that was eligible for income-contingent repayment.
  • You did not register for income-based reimbursement prior to forbearance.

Related: Student borrowers will get $15 billion in student loan forgiveness.

3. Who is eligible for private student loan forgiveness?

  • Is student debt cancellation the next step? The private student loan debt relief will primarily go to student borrowers who took out subprime private student loans (given to borrowers with low credit scores) through Navient’s predecessor, Sallie Mae, between 2002 and 2014.
  • An eligible student borrower had more than seven consecutive months of overdue payments before June 30, 2021.
  • Private student loan debt relief also includes other non-subprime private student loans made by Sallie Mae Bank and other lenders between 2002 and 2014 for borrowers to attend specific for-profit schools that made the subject to federal or state law enforcement action.
  • To be eligible for private loan debt relief, the private student loan must be in arrears for more than seven consecutive months by June 30, 2021.

(Here’s Who Won’t Get Student Loan Forgiveness).

4. What reforms does Navient need to make regarding your student loans?

Navient is to make several conduct reforms regarding student loans, including but not limited to:

  • explain the benefits of income-contingent repayment plans and suggest estimating payment amounts based on income before placing student borrowers on optional forbearance;
  • refrain from compensating customer service agents in a way that induces them to minimize the time spent advising borrowers;
  • make additional attempts to inform student borrowers of the need to recertify income and family size information annually to continue making income-based payments; and
  • create civil service specialists who will help civil service workers access the Civil Service Loan Forgiveness Program (PSLF).

(What the Republicans mean for student loans).

5. If you get student loan relief through this settlement, can you still sue Navient?

Yes. Individual student loan borrower claims are preserved under this settlement. So even if you receive financial aid or have your student loan debt forgiven, you can still sue Navient for any legal claims you have.

If you don’t qualify for student loan relief from the Navient settlement, remember that temporary student loan relief for your federal student loans won’t last forever. That’s why it’s important to prepare now for the restart of student loan repayments. Know all of your student loan repayment options. Here are some popular ways to pay off student loans faster:

Student Loans: Related Reading

Here’s who won’t get student loan forgiveness

Is student debt cancellation the next step?

Student borrowers will get $15 billion in student loan forgiveness

How Your Student Loans May Qualify for $1.7 Billion in Student Loan Forgiveness

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