$120M Navient Student Loan Settlement
Unsplash | Published: September 29, 2024
Payout: $100M Total
Proof required: No
What's the Navient Student Loan Settlement?
The Consumer Financial Protection Bureau has reached a $120 million settlement with Navient over allegations that it misled student loan borrowers, in various ways according to the CFPB. The CFPB, or Consumer Financial Protection Bureau, is a federal agency in the United States that plays a crucial role in protecting consumers in the financial sector. The settlement results in actions being taken against Navient, including the following:Permanent Ban: The CFPB's proposed order aims to permanently ban Navient from servicing federal Direct Loans and restrict its involvement with Federal Family Education Loan Program loans. This action seeks to eliminate Navient's abusive practices that have harmed borrowers.
Financial Penalties: Navient is ordered to pay a total of $120 million, which includes $100 million in redress for affected borrowers and a $20 million penalty to the CFPB's victims relief fund.
Misconduct Allegations: The CFPB's investigation revealed that Navient allegedly engaged in several harmful practices such as:
• Steering borrowers into costly forbearance instead of more affordable income-driven repayment plans.
• Misleading borrowers about repayment options and failing to notify them of required annual recertifications.
• Misallocating payments, leading to late fees and negative credit impacts.
• Harming the credit of disabled borrowers by improperly reporting discharged loans.
• Deceiving borrowers regarding cosigner release requirements and the benefits of rehabilitation programs.
What is the Total Settlement Amount?
The total settlement fund is worth $120,000,000. The total settlement consists of the following:• $100 million in redress for harmed borrowers
• $20 million penalty to be paid into the CFPB's victims relief fund1
How Do I Qualify For a Payout?
To qualify, your student loan servicer must have been Navient, or you must have been serviced by Navient when it was represented as Sallie Mae. Borrowers who faced specific issues such as being charged fees to enter a forbearance, charged multiple late fees, denied access to their loan payment history, received inaccurate information about the Public Service Loan Forgiveness program, or were steered into interest-accruing forbearances without being informed about other repayment options may be eligible for a payout as well.How Do I Find Class Action Settlements?
Find all the latest class actions you can qualify for by getting notified of new lawsuits as soon as they are open to claims:How Much Can I Get Paid?
The exact amount each eligible borrower will receive has not been disclosed by the CFPB. However, a $100 million portion of the total $120 million settlement will be used to make payments to impacted students. The specific amount individual borrowers may receive is not mentioned yet, but the total redress amount of $100 million should be distributed among eligible consumers and students.How Do I File a Claim?
Eligible borrowers will likely be identified automatically by the CFPB and may not need to apply for relief. The CFPB should mail checks to affected borrowers. As there is no claim filing process for this enforcement action, consumers do not need to provide proof or documentation at this time. Please contact the Consumer Financial Protection Bureau with any questions.Claim Form Website: ConsumerFinance.gov
Submit Claim
Filing Class Action Settlement Claims
Please note that your claim form will be rejected if you submit a settlement claim for payout with any fraudulent information. By providing this information and your sworn statement of its veracity, you agree to do so under the penalty of perjury. You would also be harming others that actually qualify for the class action settlement. If you are not sure whether or not you qualify for this class action settlement, visit the class action administrator's website below. OpenClassActions.com is only providing information and is not a class action administrator or a law firm. OpenClassActions is a participant in the Amazon affiliate advertising program and this post may contain affiliate links, which means we may earn a commission or fees if you make a purchase via those links.
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