Here’s how to qualify for $1.7 billion of student loan cancellation from the latest Navient 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, agreed to a major settlement regarding student loans to settle allegations of “widespread unfair, deceptive, and abusive student loan servicing practices and abuses in originating predatory student loans.” While Navient expressly denies violating any law, including consumer-protection laws, or causing borrower harm, 39 state attorneys general are calling it a big victory for student loan borrowers. (Related: Student loan borrowers will get $15 billion of student loan cancellation).
Here’s how to know whether you qualify for student loan relief:
1. How to qualify for $1.7 billion of student loan cancellation
Student Loan Cancellation: Navient will cancel $1.7 billion in subprime private student loan debt.
How Many Student Loan Borrowers: 66,000 student loan borrowers
Which Student Loan Borrowers: primarily at for-profit schools such as ITT Technical Institute and the Art Institute.
Details: These student loan borrowers borrowed student loans from Sallie Mae (Navient split from Sallie Mae in 2014).
How To Qualify: If you are eligible for student loan forgiveness, Navient will notify you in writing by July 2022. To qualify for this student loan relief, you don’t need to take any action. 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 of student loan relief
Student Loan Relief: Student loan borrowers collectively will get $95 million for their federal student loans.
How Many Student Loan Borrowers: 350,000 student loan borrowers
Which Student Loan Borrowers: Federal student loan borrowers who were placed in certain types of forbearance.
Details: Each eligible federal loan 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 through studentaid.gov. Federal student loan borrowers don’t need to take 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 are pursuing public service loan forgiveness.
Which Student Loan Borrowers: Federal student loan borrowers pursuing public service loan forgiveness who made prior student loan payments that were deemed ineligible under the old rules of the Public Service Loan Forgiveness program.
Details: President Joe Biden and US Secretary of Education 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 counting prior payments that were previously ineligible.
How To Qualify: Navient will notify student loan borrowers that there is a limited waiver available to get student loan forgiveness. Student loan borrowers can access the limited waiver on the website of the US Department of Education to get 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 will be eligible for student loan relief (plus borrowers in public service loan forgiveness pursuing a limited waiver). That said, there are other opportunities for student loan repayment. Make sure you understand all your options, especially as student loan relief ends. Here are some popular ways to pay off student loans:
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