Here’s how to qualify for $1.7 billion in student loan cancellation from Navient’s latest settlement.
Here’s what you need to know – And what does that mean for your student loans.
Navient, one of the nation’s largest student loan service providers, has agreed to a major student loan settlement to settle allegations of “widespread unfair, fraudulent and abusive student loan service practices and abuse of predatory student loan creation.” While Navint expressly denies violating any law, including consumer protection laws, or causing harm to the borrower, 39 state attorneys general called it a major victory for student loan borrowers. (Related: Student loan borrowers will get $15 billion from student loan cancellation.)
Here’s how to find out if you qualify for student loan forgiveness:
1. How to Qualify for $1.7 Billion Student Loan Cancellation
Student loan cancellation: Navient will cancel $1.7 billion in private student loan debt.
How many students borrow: 66000 student loan borrowers
Any student borrowing: Primarily in for-profit schools such as ITT Technical Institute and Art Institute.
details: These student loan borrowers borrowed student loans from Sallie Mae (Navient separated from Sallie Mae in 2014).
How to qualify: If you qualify for student loan forgiveness, Navient will notify you in writing by July 2022. To qualify for this student loan forgiveness, you do not need to take any action. You can redeem any student loan payments made after June 30, 2022.
(Related: Here’s Who Won’t Get Student Loan Forgiveness.)
2. How to Get $95 Million Student Loan Forgiveness
Student loan forgiveness: Student loan borrowers will collectively receive $95 million in federal student loans.
How many students borrow: 350,000 student loan borrowers
Any student borrowing: Federal student loan borrowers who are put into certain kinds of patience.
details: Each eligible federal loan borrower will receive approximately $260 per borrower and will receive a postcard in the mail from a settlement official later this spring.
How to qualify: Federal student loan borrowers are encouraged to update their contact information with the U.S. Department of Education through studentaid.gov. Federal student loan borrowers do not need to take additional action.
3. How to Get Student Loan Forgiveness Through Limited Waiver
Student loan forgiveness: Student loan borrowers can obtain student loan forgiveness through a limited waiver.
How many students borrow: Federal student loan borrowers seeking forgiveness from public service loans.
Any student borrowing: Federal student loan borrowers who are seeking public service loan forgiveness and who have made past student loan payments that were deemed ineligible under the legacy rules of the Public Service Loan Forgive Program.
details: President Joe Biden and US Education Secretary Miguel Cardona announced a comprehensive reform of the Public Service Loan Forgiveness Program. This includes making more student loan borrowers eligible for student loan forgiveness and counting payments that were previously ineligible.
How to qualify: Navient will notify student loan borrowers that there is limited forgiveness available to obtain student loan forgiveness. Student loan borrowers can access limited forgiveness on the US Department of Education’s website for student loan forgiveness.
Student loans: next steps
Not everyone will qualify for this student loan forgiveness. Of the 45 million student loan borrowers, fewer than 500,000 will be eligible for student loan forgiveness (plus borrowers in public service loan forgiveness based on limited forgiveness). However, there are other opportunities to pay off a student loan. Make sure you understand all of your options, especially when your student loan forgiveness expires. Here are some popular ways to pay off student loans:
Student loans: related reading
Is canceling student debt next?
Student loan borrowers will get $15 billion from student loan cancellation
Student loans will change in 5 major ways in 2022
Biden Extended Student Loan Forgiveness, But Advocates Really Want Student Loan Canceled