Navient settlement

 I wanted to share this story when I first heard about it since this blog has a few posts about student loan debt. 

From the Delaware News Journal:

Thousands of people with student loan debt will have their debt canceled or receive a one-time check as part of a multistate settlement with one of the nation's largest student loan servicers.

Navient, the Wilmington-based company, was accused of encouraging borrowers to pause payments through forbearance rather than directing them to lower-cost repayment plans tied to their income. Although Navient denies the charges, the settlement ends probes by multiple states into the company's practices and will affect thousands of people whose loans are serviced by Navient.

The loans in question were mostly originated by Sallie Mae between 2002 and 2014 before Sallie Mae spun off its student loan services as Navient in 2014. The agreement will result in the cancellation of $1.7 billion in student loans. Another $95 million will be distributed in restitution payments worth about $260.

How do I find out if I will benefit?

Those who will have private loan debt canceled will be notified by Navient no later than July. They will receive a refund for payments made after June 30, 2021.

Borrowers who are eligible for the $260 restitution payment will receive a postcard from a settlement administrator this spring.

With this said if you're currently making payments continue to do so, especially if there is a possibility that you might not be eligible for the student loan cancellation. At the very least wait until you get official notification by Navient.

If you want more information I would suggest going to https://www.navientagsettlement.com/  to find out as much info as possible. The Attorney General of Illinois was one of four state Attorney Generals who led this settlement. And of course 35 other states are party to this settlement.

From that website:

Under the terms of the settlement, Navient will cancel the remaining balance on $1.7 billion in subprime private student loan balances owed by more than 66,000 borrowers nationwide. In addition, Navient will pay $142.5 million to the attorneys general. A total of $95 million in restitution payments of about $260 each will be distributed to approximately 350,000 federal loan borrowers who were placed in certain types of long-term forbearances. Borrowers who will receive restitution or debt cancellation span all generations: Navient’s harmful conduct impacted everyone from students who enrolled in colleges and universities immediately after high school to mid-career students who dropped out after enrolling in a for-profit school in the early to mid-2000s.

As stated you will be notified of whatever resolution to your debt that you are due.