Navient recently offered to cancel $1.7 billion of private student loan debt. That was for borrowers who attended specific for-profit schools from 2002-to 2014, lived in certain states, or were more than seven months late on their loan payments before July 31, 2021. Federal student loan borrowers with Direct Loans (FFEL Loans) and Parent PLUS Loans (Consolidation Loans) won’t see their debt forgiven. If you think you are eligible for the Navient settlement 2022 we are here to help you.
Navient announced that it would write off the outstanding balances of 66000 borrowers who borrowed private, predatory student loans at high interest between 2002-2014 as part of a settlement.
People often ask the question: Am I eligible for the Navient settlement.
The short answer is “Probably not”.
Less than 0.15% will be able to benefit from the settlement, which eliminates $1.7billion in debt.
How you can find your eligibility for the Navient settlement.
They will send Postcards to those whose loans will be cancelled by the Navient settlement on April 22. Notification should be received by the first week in May if your debts are cancelled.
You can still check your eligibility by checking with your student loan servicer. Your eligibility for relief depends on the company that holds your loan.
The settlement agreement does not cover your loans with Sallie Mae.
You may be eligible to cancel private student loans if you have a Navient loan. However, this is only possible if you were in default for seven consecutive months before June 30, 2021, and are a resident of one of the participating States. Navient continues to service federal student loans under the Federal Family Education Loans. Because the settlement terms don’t cover them, It will not wipe out your FFEL Loans. Continue reading: Is Navient Federal or Private Student Loan?
Your loans transferred to Advantage won’t be erased, even though they were original with Sallie Mae and then moved to Navient. These loans are federal student loans. The Education Department offers relief through the student loan forgiveness program.
Unlikely you will get a loan refund if you have settled your loans with Sallie Mae or Navient. This settlement is only applicable to outstanding loans. It’s a good idea to contact Navient to request a refund if your loan is cancelled.
To see all eligibility criteria for loan forgiveness, please refer to Appendix A of the proposed Settlement.
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What’s the Navient student loan settlement 2022 like?
Navient’s student loan settlement agrees with the attorneys general of 39 states and the District of Columbia to settle lawsuits against Navient.
Students who could not repay the loan on time were given high-interest loans.
Instead of offering relief options such as income-based repayment or Public Service Loan Forgiveness, it is better to force federal student loan borrowers into bankruptcy.
Navient denied all allegations and stated that it had settled to avoid “additional cost, expense, time, and distraction to prevail at court.”
Navient will cancel $1.7 billion in subprime student loans it gave to students at for-profit schools. Many of these students had low credit scores. Many of these schools have since closed their doors.
It will also pay a small amount to 350 000 federal student loan borrowers whose loans were serviced.
Eligibility for Navient Settlement: Who Qualifies to Cancellate?
Only a few borrowers will be eligible to have their loans cancelled as part of the Navient Settlement 2022. These are the eligibility requirements:
- You must be in default for seven consecutive months or charge-off before June 30, 2021.
- You must reside in a participating state in the settlement.
- Most loans are only eligible if they are still available or reported to credit bureaus by June 30, 2021. You can’t cancel a loan beyond the statute of limitations in the state Navient.
- Between October 2009 and January 2017, you were enrolled in two consecutive years of forbearances.
- You made repayments before January 2015.
- A minimum of one federal loan was eligible for an income-driven repayment plan.
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Navient Lawsuit Settlement Schools List
Major for-profit chains such as ITT Tech or Corinthian Colleges are eligible schools. Both have since collapsed. It also includes Art Institute and DeVry University, Kaplan University, Le Cordon Bleu and Le Cordon Bleu.
- Corinthian, Bryman Institute and Everest Institute, Everest Colleges, Everest Colleges, Heald Colleges, and WyoTech
- DeVry, DeVry University and Ross University, Keller Graduate School of Management and Carrington College
- Education Corporation of America- Virginia College and Brightwood College
- Education Management Corporation, Art Institute Argosy University Brown Mackie and South University
- Minnesota School of Business, Minnesota School of Business, and Globe University
- Graham Holdings, Kaplan University and Kaplan Career Institute, Kaplan College and Mount Washington College
- ITT Educational Services –ITT Technical Institute
- Lincoln Educational Services- Lincoln Technical Institute
- B&H Education- Marinello School of Beauty
Navient settlement states
Your mailing address should be in one of the following states to qualify for the Navient Settlement:
Arizona, Arkansas. California, Colorado. Connecticut. Delaware, District of Columbia. Florida, Georgia. Hawaii. Illinois. Indiana. Iowa. Kansas. Louisiana. Maine. Maryland. Massachusetts. Michigan. Minnesota. Missouri. Nevada. New Jersey. New York. North Carolina. Ohio. Oregon. Pennsylvania. Rhode Island. South Carolina. Tennessee. Vermont. Virginia. West Virginia. Washington.
States are not in the Navient settlement.
If your mailing address, as filed with Navient on June 30, 2021, was in one of these states, you are not eligible for the Navient student loans settlement.
Because your state’s attorney general didn’t participate, you are not eligible for relief. However, residents of these states and others may file individual lawsuits against Navient for relief.
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Navient Settlement 2022 Application
Borrowers don’t need to apply for the Navient Settlement to get their loans forgiven. There is no “Navient Settlement Request.” Navient will mail you a letter semblable to the one below by July 2022. It will tell which loans are being cancelled.
Eligible federal student loan borrowers do not need to apply for Navient to mail them checks. Navient will automatically mail the checks later in spring. You can contact Navient to have your address updated to have the most up-to-date information.
Join the Navient Lawsuit
If your address was located in a participating location in the Navient settlement 2022, you have already signed up for the lawsuit.
The Consumer Financial Protection Bureau filed another Navient lawsuit in 2017. It is still pending. This lawsuit is not mandatory.
Seeking the concern of our readers Student Loan Forgiveness Application is here to help you in this regard. You can contact us regarding Navient settlement 2022.