Here’s how to qualify for the $1.7 billion student loan cancellation from the latest Navient Settlement.
Here’s what you need to know – And what this means for your student loans,
Navient, one of the nation’s largest student loan servicers, agreed to a major settlement regarding student loans to settle allegations of “pervasive unfair, deceptive, and abusive student loan servicing practices and misconduct in originating predatory student loans.” Happened. While Navient explicitly denies violating any laws or harming the borrower, including consumer-protection laws, the 39 state attorney general is calling it a major victory for student loan borrowers. (Related: Student loan borrowers will get $15 billion student loan cancellation).
Here’s whether you qualify for student loan relief:
1. How to Qualify for $1.7 Billion of Student Loan Cancellation
Student loan cancellation: Navient Subprime will cancel $1.7 billion in private student loan debt.
How many student loan borrowers: 66,000 Student Loan Borrowers
Which student loan borrower: Mainly in for-profit schools like ITT Technical Institute and Art Institute.
Description: These student loan borrowers borrowed student loans from Sally Mae (Navient split from Sally Mae in 2014).
How to qualify: Navient will notify you in writing by July 2022 if you are eligible for student loan forgiveness. To qualify for this student loan relief, you don’t need to take any action. You can get a refund for any student loan payments made after June 30, 2022.
(Related: Here’s Who Won’t Get Student Loan Forgiveness).
2. How to Get $95 Million Student Loan Relief
Student Loan Relief: Student loan borrowers will collectively receive $95 million for their federal student loans.
How many student loan borrowers: 350,000 student loan borrowers
Which student loan borrower: Federal student loan borrowers who were placed in some form of forbearance.
Description: Each eligible federal loan borrower will receive approximately $260 each and a postcard in the mail from the settlement administrator later this spring.
How to qualify: Federal student loan borrowers are encouraged to update their contact information with the US Department of Education through studentaid.gov. Federal student loan borrowers are not required to take additional action.
3. How to Get Student Loan Forgiveness Through Limited Discount
Student Loan Relief: Student loan borrowers can obtain student loan forgiveness through a limited amount of discounts.
How many student loan borrowers: Federal student loan borrowers who are pursuing public service loan forgiveness.
Which student loan borrower: Federal student loan borrowers pursuing public service loan forgiveness who made prior student loan payments were deemed ineligible under the old rules of the Public Service Loan Forgiveness Program.
Description: President Joe Biden and US Education Secretary Miguel Cardona announced a major overhaul of the Public Service Loan Forgiveness program. This includes making more student loan borrowers eligible for student loan forgiveness and calculating prepayments that were previously ineligible.
How to qualify: Navient will notify student loan borrowers that there are limited discounts available to receive student loan forgiveness. Student loan borrowers can use limited discounts on the U.S. Department of Education website to obtain student loan forgiveness.
Student Loans: Next Steps
Not everyone will qualify for this student loan forgiveness. Of the 45 million student loan borrowers, less than 500,000 would be eligible for student loan relief (as well as borrowers pursuing limited exemptions in public service loan forgiveness). That said, there are other student loan repayment opportunities. Make sure you understand all your options, especially when student loan relief comes to an end. Here are some popular ways to pay off student loans:
Student Loans: Related Reading
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