Ds Scholarship

Navient Student Loan Settlement Details


Restitution

As a result of the settlement, Navient will cancel the remaining balance on some $1.7 billion in subprime private student loan balances owed by more than 66,000 borrowers nationwide who took out loans between 2002 and 2014. Those borrowers must also have seven consecutive months of delinquent payments before June 30, 2021. Those who get their private loan balances canceled will get a notice from Navient by July 2022.

In addition, a total of $95 million in restitution payments of about $260 apiece will be distributed to about 350,000 federal loan borrowers whom Navient steered to forbearance instead of income-driven repayment plans. Eligible borrowers will get a postcard in the mail from the settlement administrator later in the spring. No action needs to be taken by borrowers at this time, according to the settlement.

The checks will go to borrowers in Arizona, California, Colorado, Connecticut, the District of Columbia, Delaware, Florida, Georgia, Hawaii, Iowa, Illinois, Indiana, Kentucky, Louisiana, Massachusetts, Maryland, Maine, Minnesota, Missouri, Mississippi, North Carolina, Nebraska, New Jersey, New Mexico, Nevada, New York, Ohio, Oregon, Pennsylvania, Tennessee, Virginia, West Virginia, Washington and Wisconsin.

Navient did not admit any fault in the settlement.

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