How Your Student Loans May Qualify for $1.7 Billion in Student Loan Forgiveness
Here’s how to qualify for $1.7 billion in student loan forgiveness under Navient’s latest settlement.
Here’s what you need to know — and what it means for your student loans.
Navient, one of the nation’s largest student loan servicers, has agreed to a major student loan settlement to address allegations of “widespread unfair, deceptive and abusive student loan servicing practices and abuse in granting predatory student loans. While Navient expressly denies breaking any laws, including consumer protection laws, or causing harm to the borrower, 39 state attorneys general are calling it a big win for student borrowers. (Related: Student Borrowers to Get $15 Billion in Student Loan Forgiveness).
Here’s how to find out if you qualify for student loan relief:
1. How to qualify for $1.7 billion in student loan forgiveness
Cancellation of student loan: Navient will cancel $1.7 billion in at-risk private student loans.
How many student loan borrowers: 66,000 student borrowers
Which student loan borrowers: mostly at for-profit schools such as the ITT Technical Institute and the Art Institute.
Details: These student borrowers borrowed student loans from Sallie Mae (Navient split from Sallie Mae in 2014).
How to qualify: If you are eligible for student loan relief, Navient will notify you in writing by July 2022. To receive this student loan relief, you do not have to do anything. You can receive a refund for any student loan payment made after June 30, 2022.
(Related: Here’s Who Won’t Get Student Loan Forgiveness).
2. How to Get $95 Million in Student Loan Relief
Student loan relief: Student borrowers will collectively receive $95 million for their federal student loans.
How many student loan borrowers: 350,000 student borrowers
Which student loan borrowers: Federal student loan borrowers who have been placed in certain types of forbearance.
Details: Each eligible federal borrower will receive approximately $260 each and will receive 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 via studentaid.gov. Federal borrowers do not need to take any additional action.
3. How to Get Student Loan Forgiveness Through a Limited Waiver
Student loan relief: Student loan borrowers can get student loan forgiveness through a limited waiver.
How many student loan borrowers: Federal student loan borrowers who request loan forgiveness from the public service.
Which student loan borrowers: Federal borrowers applying for Public Service Loan Forgiveness who have previously made student loan payments deemed ineligible under the old Public Service Loan Forgiveness Program rules.
Details: President Joe Biden and US Secretary of Education Miguel Cardona announced a major overhaul of the Civil Service Loan Forgiveness Program. These include making more student borrowers eligible for student loan forgiveness and counting past payments that were previously ineligible.
How to qualify: Navient will notify student loan borrowers that there is a limited waiver available to obtain student loan forgiveness. Student loan borrowers can access the limited waiver on the US 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 borrowers, less than 500,000 will be eligible for student loan relief (plus borrowers in civil service loan forgiveness pursuing a limited waiver). That said, there are other options for student loan repayment. Make sure you fully understand all of your options, especially at the end of student loan relief. Here are some popular ways to repay student loans: