Some student loan borrowers are getting Navient settlement checks — here's who qualifies
#Navient settlement #student loan forgiveness #CFPB #loan forbearance #student loan debt #repayment plans #consumer protection #financial compensation
📌 Key Takeaways
- Student loan borrowers are receiving settlement checks from a $120 million settlement with Navient
- The settlement resulted from allegations that Navient steered borrowers into expensive forbearances instead of affordable repayment plans
- Qualifying borrowers are those who had federal loans with Navient placed in forbearance in 2017 or earlier
- The CFPB estimates at least 100,000 borrowers may receive compensation, with payments potentially reaching several hundred dollars
📖 Full Retelling
Student loan borrowers in the United States who were steered into expensive forbearance by former federal loan servicer Navient are now receiving settlement checks more than a year after the Consumer Financial Protection Bureau reached a $120 million settlement with the company over allegations that it harmed borrowers. The settlement stems from allegations that Navient, which was once the largest student loan servicer in the U.S. managing accounts for over 12 million people, improperly guided borrowers away from affordable repayment plans and into forbearance options. This practice caused many borrowers to accumulate significant interest charges and delayed their financial progress, as noted by consumer advocate Julia Barnard, who was the top student loan official at the CFPB when the settlement was announced. The CFPB banned Navient from handling federal education loans as part of the settlement, though the company continues to operate in the private student loan market. Qualifying borrowers are those who had federal student loans with Navient and had their accounts placed in forbearance in 2017 or earlier, according to higher education expert Mark Kantrowitz. Borrowers can check their loan servicer history at Studentaid.gov to determine if they qualify, as many borrowers have been transferred between servicers over the years. Navient's federal student loan accounts were initially transferred to Mohela and may have subsequently been switched to Aidvantage, Nelnet, or EdFinancial. While the CFPB has not disclosed the exact number of borrowers who will receive compensation, Kantrowitz estimates that at least 100,000 people could get checks, with typical payments expected to be several hundred dollars. Borrowers on Reddit have reported settlement payments of up to $2,000. The financial consequences of forbearances can be substantial, as interest continues to accrue during periods when payments are paused.
🏷️ Themes
Student loans, Consumer protection, Financial settlements
📚 Related People & Topics
Consumer Financial Protection Bureau
United States government agency
The Consumer Financial Protection Bureau (CFPB) is an independent agency of the United States government responsible for consumer protection in the financial sector. CFPB's jurisdiction includes banks, credit unions, securities firms, payday lenders, mortgage-servicing operations, foreclosure relief...
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In this article NAVI Follow your favorite stocks CREATE FREE ACCOUNT Source: Navient Some student loan borrowers can soon expect a check in the mail, more than a year after the Consumer Financial Protection Bureau reached a $120 million settlement with former federal servicer Navient . The CFPB said Navient steered student loan borrowers away from affordable repayment plans and into expensive forbearances , causing many to pay steep interest charges. "People suffered real consequences — delaying children, not buying homes or returning to school when they wanted to, and more," said consumer advocate Julia Barnard, who was the top student loan official at the CFPB when the settlement was announced. "These checks are necessary and will help make debtors whole after the harm they faced due to Navient's misconduct." Read more CNBC personal finance coverage Some student loan borrowers are getting Navient settlement checks — who qualifies Trump accounts aren't exactly 'tax-free,' as the president said. How they work Trump said beef, egg and chicken prices are falling. Here's what the data shows Trump pitches new retirement plan with a match of up to $1,000 — who may benefit Think of active managers and index funds as portfolio 'teammates,' not 'rivals': CFP Many workers want a career change. Are you one of them? ACA health coverage subsidy lapse hit 22 million people. Here are some of their stories Trump's $2,000 tariff dividend checks just got a lot less likely, experts say Student loan forgiveness is taxable again. How to plan for a five-figure IRS bill What the Trump administration's Harvard lawsuit could mean for future applicants Homebuyers are paying more for credit checks. Here's why Trump accounts have 'more unanswered questions than answered,' expert says Treasury: Trump accounts sign up about 3 million kids in early push Average IRS tax refund is up 14.2%, according to early filing data Student loan delinquency rate jumps to nearly 25% in Trump's second term: ana...
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