Borrowers who qualify for private loan debt cancellation will receive a notice from Navient by July 2022 and will be refunded any payments made on canceled private loans after June 30, 2021.
A major student loan servicing company has reached a settlement that will cancel .7 billion in student loan debt for around 66,000 borrowers, as well as provide million in restitution – around 0 each – to 350,000 borrowers.
According to the settlement statement, borrowers who qualify don’t need to take any further action other than to make sure the U.S. Department of Education has their current address through their studentaid.gov account.
- Redirecting borrowers into forbearance instead of pushing them toward more sensible income-based repayment options.
- Through its predecessor, Sallie Mae, directing borrowers to subprime loans that they knew would likely default.
Federal loan borrowers receiving the approximate 0 restitution payment will receive a postcard from the settlement administrator in the spring of 2022.
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How to Find Out if the Navient Settlement Affects You
While wholesale student loan forgiveness remains a distant possibility, it’s best to use the extended forbearance period to your advantage and make a debt payoff plan.
If you’re nearing retirement and still owe on student loans, here are six ways to cope.
If you’re unsure who your loan servicer is, you can easily find out by logging into your account at studentaid.gov.
Ready to stop worrying about money?
You should be able to identify the types of loans you have as well as your servicer through your account dashboard. Or you can call the Federal Student Aid Information Center (FSAIC) at 1-800-433-3243.
Tips for Anyone Struggling With Student Loan Debt
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Here are some strategies for paying down your student debt — fast and forever — including checking into whether you qualify for Public Service Loan Forgiveness.
“Today’s settlement corrects Navient’s past behavior . . . and puts in place safeguards to ensure this company never preys on student loan borrowers again,” said Pennsylvania Attorney General Josh Shapiro in a statement.
Here’s what you need to know about the settlement. <!–
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Navient’s settlement with attorneys general in 39 states is over two primary accusations: