Navient to Settle Lawsuits, Offers $16M Relief to Student Loan Borrowers

Date:

Updated: 2:18 AM, Tue November 21, 2023

Navient, the private loan servicer, has announced its decision to settle a number of class-action lawsuits by offering $16 million in relief to student loan borrowers. The lawsuits were filed against the company for illegally collecting money from students on debts that had been discharged in bankruptcy. This settlement comes after Navient agreed to a larger $198 million settlement in July, which aims to provide relief to borrowers whose student loans exceeded their college tuition costs.

The $16 million settlement will be distributed among a class of 4,607 borrowers who are eligible to file a claim. The deadline for filing a claim is Monday, and in order to be eligible, borrowers must have filed for bankruptcy protection on or after October 17, 2005, must have been obligated to repay their loans, must have received a court-approved discharge order, and must have never reaffirmed their loans.

The settlement will compensate eligible borrowers for damages suffered, including student loan payments made after Navient’s bankruptcy collection efforts. The amount each borrower receives will range from 20% to 100% of their damages.

While Navient has denied any wrongdoing, it has agreed to provide this relief as part of the settlement. The final hearing for the settlement is scheduled to take place on December 13 at the District Court for the Eastern District of New York.

This settlement offers some much-needed assistance to student loan borrowers who have been affected by Navient’s practices. By providing relief to those whose loans exceeded their college tuition costs and compensating borrowers for the funds unlawfully collected, Navient aims to rectify the harm caused to these individuals.

If you are a student loan borrower who used Navient’s services and you meet the eligibility criteria, it is important to file a claim by Monday to receive your part of the settlement. The online claim form can be accessed through the provided link.

It is worth noting that this settlement represents a step toward addressing the issue of student loan debt and holding loan servicers accountable for their actions. By providing relief and compensation, it aims to bring some measure of justice to borrowers who have been affected by Navient’s unlawful collection practices.

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Shreya Gupta
Shreya Gupta
Shreya Gupta is an insightful author at The Reportify who dives into the realm of business. With a keen understanding of industry trends, market developments, and entrepreneurship, Shreya brings you the latest news and analysis in the Business She can be reached at shreya@thereportify.com for any inquiries or further information.

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