$120M Navient Student Loan Settlement

Unsplash | Published: September 29, 2024 · Updated: July 7, 2026

Payout: $100M Total

Proof required: No

Update (July 2026): Redress payments are now going out. According to the CFPB, checks began mailing in early 2026 (reported February 13, 2026) and are being distributed on a rolling basis by Rust Consulting, the CFPB's payment administrator. Payments are automatic — eligible borrowers do not need to file a claim, apply, or pay any fee. Reported payment amounts range from roughly $100 to $2,000 depending on the harm, though the CFPB has not published a per-borrower formula. The CFPB has warned that it will never ask you to pay money or to provide additional information before you cash a redress check — treat any such request as a scam.

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.

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How Much Can I Get Paid?

A $100 million portion of the total $120 million settlement is being used to pay harmed borrowers, with the remaining $20 million paid as a penalty to the CFPB's victims relief fund. The CFPB has not published a per-borrower formula, but reporting on the checks that began going out in early 2026 puts individual payments in the range of roughly $100 to $2,000, depending on the type and severity of the harm. Payments are being distributed on a rolling basis, so eligible borrowers may receive their checks at different times.

How Do I File a Claim?

There is no claim to file. This is a CFPB enforcement action, not a class action, so eligible borrowers are identified automatically from Navient's records and paid directly — there is no application, no proof, and no documentation to submit. Redress checks began mailing in early 2026 (reported February 13, 2026) and are being sent on a rolling basis by Rust Consulting, the CFPB's payment administrator. If you think you qualify but your address may be out of date, make sure your contact information is current. Watch out for scams: the CFPB will never ask you to pay a fee or provide additional information before you can cash a redress check.

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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