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Were you a federal student loan borrower with Navient, or previously, Sallie Mae? If so, you may be receiving a settlement check in your mailbox. Some borrowers on Reddit say they’ve already received these checks, ranging from $50 to $2,000. Navient is one of the country’s largest student loan services. It was called Sallie Mae up until 2014. Navient faced a lawsuit filed by the Consumer Financial Protection Bureau that alleges they pushed borrowers into forbearance, or pausing payments, instead of income-driven repayment plans that could have lowered their monthly bills. The lawsuit also alleges Navient botched payment processing, harmed the credit of disabled borrowers, including severely injured veterans, deceived borrowers about Navient’s requirements for cosigner release and misled borrowers about improving credit scores. Navient has denied wrongdoing but agreed to settle. In turn, the company is banned from servicing most federal student loan activities, including servicing federal Direct Loans. Navient also has to pay a $20 million penalty to the CFPB’s victims relief fund and $100 million back to affected customers. Who qualifies for the settlement checks? If you placed your federal student loans in forbearance with Navient in 2017 or earlier, you may qualify for compensation. Impacted borrowers should not need to do anything, the CFPB says the checks are being mailed out. What if you accidentally threw out the check? If you believe you accidentally threw out your settlement check, contact the CFPB’s third-party settlement administrator Rust Consulting to request a reissue.Phone: 1-800-711-8418 (toll free)Email: navient_info@rustcfpbconsumerprotection.orgMail: CFPB v NavientP.O. Box 2561Faribault, MN 55021-9561 What if you haven’t received a check but believe you should? If you didn’t get a check, but believe you should, the CFPB advises calling its hotline at 1-800-711-8418 after March 30. Past legal history issues According to the CFPB, Navient has had a history of violations. In 2014, the Department of Justice and the Federal Deposit Insurance Corporation ordered Navient and its predecessor, Sallie Mae, to pay almost $100 million for illegally overcharging nearly 78,000 service members. In 2021, the Department of Education ordered Navient to return more than $22 million in overcharges.In 2022, 39 state attorneys general announced a $1.85 billion settlement with Navient for deceptive student loan servicing practices and its forbearance steering practices. Stay Connected With the National Consumer UnitGet clear, actionable consumer reporting delivered across platforms.Follow National Consumer Correspondent Allie Jasinski for real-time updates, myth-busting videos, and behind-the-scenes reporting on Instagram, TikTok and YouTube.
Were you a federal student loan borrower with Navient, or previously, Sallie Mae?
If so, you may be receiving a settlement check in your mailbox.
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Some borrowers on Reddit say they’ve already received these checks, ranging from $50 to $2,000.
Navient is one of the country’s largest student loan services. It was called Sallie Mae up until 2014.
Navient faced a lawsuit filed by the Consumer Financial Protection Bureau that alleges they pushed borrowers into forbearance, or pausing payments, instead of income-driven repayment plans that could have lowered their monthly bills.
The lawsuit also alleges Navient botched payment processing, harmed the credit of disabled borrowers, including severely injured veterans, deceived borrowers about Navient’s requirements for cosigner release and misled borrowers about improving credit scores.
Navient has denied wrongdoing but agreed to settle.
In turn, the company is banned from servicing most federal student loan activities, including servicing federal Direct Loans.
Navient also has to pay a $20 million penalty to the CFPB’s victims relief fund and $100 million back to affected customers.
Who qualifies for the settlement checks?
If you placed your federal student loans in forbearance with Navient in 2017 or earlier, you may qualify for compensation.
Impacted borrowers should not need to do anything, the CFPB says the checks are being mailed out.
What if you accidentally threw out the check?
If you believe you accidentally threw out your settlement check, contact the CFPB’s third-party settlement administrator Rust Consulting to request a reissue.
- Phone: 1-800-711-8418 (toll free)
- Email: navient_info@rustcfpbconsumerprotection.org
- Mail: CFPB v Navient
P.O. Box 2561
Faribault, MN 55021-9561
What if you haven’t received a check but believe you should?
If you didn’t get a check, but believe you should, the CFPB advises calling its hotline at 1-800-711-8418 after March 30.
Past legal history issues
According to the CFPB, Navient has had a history of violations. In 2014, the Department of Justice and the Federal Deposit Insurance Corporation ordered Navient and its predecessor, Sallie Mae, to pay almost $100 million for illegally overcharging nearly 78,000 service members.
In 2021, the Department of Education ordered Navient to return more than $22 million in overcharges.
In 2022, 39 state attorneys general announced a $1.85 billion settlement with Navient for deceptive student loan servicing practices and its forbearance steering practices.
Stay Connected With the National Consumer Unit
Get clear, actionable consumer reporting delivered across platforms.
Follow National Consumer Correspondent Allie Jasinski for real-time updates, myth-busting videos, and behind-the-scenes reporting on Instagram, TikTok and YouTube.
