What should I do if I had a student loan with Navient?
Navient has consistently ranked as one of the most disliked student loan servicers among borrowers. There are also several Navient lawsuits that contend the servicer’s missteps have indeed entered into criminal territory. With so many customer service and repayment guidance complaints, student loan borrowers need to be aware of options for Navient student loan forgiveness. There have been several Navient lawsuits that contend the servicer’s missteps have indeed entered into criminal territory. A major settlement was reached in January 2022 that includes $1.7 billion in private student loan debt cancellation and $95 million in restitution payments to certain federal student loan borrowers. In September 2021, Navient announced its desired departure from the student loan servicing business, with plans to transfer its six million federal borrower accounts to a company called Maximus Education. However, Maximus created a subsidiary called Aidvantage, which will now be the official student loan servicer for those who were previously stuck with Navient. Despite once being the same company, Navient and Sallie Mae are now completely separate organizations.
Navient loan cancellation and restitution payments: 2022 settlement details
On January 13, 2022, a major settlement was announced that will provide “relief totaling $1.85 billion to resolve allegations of widespread unfair and deceptive student loan servicing practices and abuses in originating predatory student loans”, according to the Pennsylvania Attorney General.
Cancel the remaining balances on $1.7 billion in subprime private student loan balances owed by more than 66,000 borrowers.
Provide $95 million in restitution payments to approximately 350,000 federal loan borrowers who were steered into long-term forbearance, equaling about $260 each.
Pay $142.5 million to the attorney generals.
Conduct various internal reforms aimed at benefiting student loan borrowers.
If you qualify for loan cancellation under this settlement, you’ll be automatically notified by Navient by July 2022. You should receive a refund for any payments made on the canceled debt after June 30, 2021. If you’re eligible for restitution payments, be sure to update your address and contact information within your StudentAid.gov account from the U.S. Department of Education. You should receive a postcard in the mail from the settlement administrator sometime in spring 2022.