The lawsuit alleged that Navient knew most borrowers could not repay the loans but wanted to secure preferred-lender status with the schools. Private loan borrowers received notification of their cancelled loans by July 2022, including any refunds of payments made on the cancelled loans after June 30, 2021.
Are Navient student loans being forgiven?
Navient student loan forgiveness is available for FFEL Loans if you work in public service or have been in student loan repayment for at least two decades.
Who gets their loans Cancelled by Navient?
Only loans held by the Department of Education are eligible for the loan cancellation program. As of September 29, 2022, ED issued a FAQ announcing that borrowers with federal student loans not held by ED cannot obtain one-time debt relief by consolidating those loans into Direct Loans.
Who does the Navient settlement affect?
The private loan debt relief will primarily go to borrowers who took out private subprime student loans (made to borrowers with low credit scores) through Navient’s predecessor, Sallie Mae, between , and then had more than seven consecutive months of delinquent payments prior to June 30, 2021.
What is the Navient settlement?
As part of the settlement, Navient will be canceling $1.7 billion in private student loans and paying $95 million in restitution to borrowers who were victim to their predatory tactics, plus another $145 million to the states involved.
How do I know if my Navient loan will be forgiven?
Borrowers need not apply for the Navient settlement to get their loans forgiven. There isn’t a “Navient Settlement Application.” By July 2022, Navient will send you a letter like the one below, showing which of your loans will be canceled.
What happens if I don’t pay my Navient loan?
If you don’t make your student loan payment or you make your payment late, your loan may eventually go into default. If you default on your student loan, that status will be reported to national credit reporting agencies. This reporting may damage your credit rating and future borrowing ability.
How will I know if my student loans are forgiven?
How will I know when my loans are forgiven? The Department of Education will notify you when your application is approved, and your loan servicer will update you once your loans are forgiven. Keep an eye out for any correspondence from your servicer via email or mail, and regularly check your loan balance online.
How much will I get from Navient settlement?
While no federal student loans are being forgiven or cancelled under the settlement agreement with Navient, many borrowers will receive a modest financial award called restitution. About 350,000 borrowers will be eligible for around $95 million in restitution, which comes out to around $260 to $270 per borrower.