On January 13, 2022, several State Attorney Generals announced that Navient must provide $1.85 billion to resolve unfair and deceptive student loan servicing practices. If you were involved with Navient at some point since 2009, you might be wondering the following:
- What exactly does the settlement entail?
- Who qualifies for relief under the settlement?
- How will relief be received?
- Can I still sue Navient for my personal relief?
If you or someone you know believes you are entitled to relief under the Attorney General settlement, contact an experienced attorney at Law Office of Simon Goldenberg, PLLC. To schedule a consultation to discuss your grievance and determine if you are eligible for relief under the settlement, contact us at 888-301-0584 or contact us online.
What Does The Attorney General Settlement Entail?
The attorney general settlement resolves claims that Navient steered struggling student loan borrowers into costly long-term forbearances instead of providing information about the benefits of more affordable income-driven repayments. Additionally, Navient allegedly originated predatory subprime private loans to attend for-profit schools to induce schools to use Navient as their preferred lender.
As a result of the settlement, Navient will cancel the remaining balance of $1.7 billion in subprime private student loan balances held by approximately 66,000 borrowers. In addition, Navient must pay 39 attorney generals $142.5 million and $95 million in restitution to about 350,000 federal loan borrowers.
The Navient settlement will result in payments of approximately $270 to each of the affected federal student loan borrowers.
Who Qualifies For Relief Under The Settlement?
Who Is Eligible For Restitution?
The settlement provides restitution to specific federal loan borrowers. Generally, borrowers are eligible for restitution if they meet the following qualifications:
- Resided in one of the following states: AZ, CA, CO, CT, DC, DE, FL, Ga, HI, IA, IL, IN, KY, LA, MA, MD, ME, MN, MO, NC, NE, NJ, NM, NV, NY, OH, OR, PA, TN, VA, WA, and WI
- Entered repayment on a direct or FEEL program before January 2015;
- Was eligible for income-driven repayment;
- Did not enroll in income-driven repayment before a forbearance;
- Has at least two years of consecutive verbal or administrative forbearance between October 2009 and January 2017; and
- At least one of the forbearance periods was entered into through a phone call, and at least half of the forbearance time was prospective.
How Will Relief Be Received?
In New York, approximately 25,000 individuals are eligible for restitution, and each eligible New Yorker will receive a check in the mail from Rust Consulting. Additionally, Navient was required to inform the approximate 4,300 New Yorkers that they were eligible for debt relief via mail by July 2022. If you believe you should be eligible for relief but did not receive a check or written notification from Navient, contact Law Office of Simon Goldenberg, PLLC.
Can I Still Sue Navient For Personal Relief?
Yes, under the Navient lawsuit, it was determined that individuals can still sue Navient individually about their individual claims. So, for example, if someone received the $270 restitution check from Navient, they will still be able to sue for any valid legal claim they may have against Navient.