The Attorneys General for 39 states entered into a settlement agreement with Navient (formerly known as Sallie Mae), a large national student loan servicer, “to resolve allegations of widespread unfair and deceptive student loan servicing practices and abuses in originating predatory student loans.”
The settlement was released on January 13, 2022. The release can be found at www.navientagsettlement.com.
The big question that everyone wants to know is whether it will impact their student loan.
According to the release, the settlement covers two categories of borrows:
- Federal student loan borrowers who were in default from 2009 forward, and
- Subprime private student loan borrowers whose loans were originally initiated by Navient.
According to the release, there is nothing a borrow needs to do in order to assert his/her/their qualifications for this settlement. The release states, “borrowers receiving private loan debt cancellation will receive a notice from Navient by July 2022, along with refunds of any payments made on the cancelled private loans after June 30, 2021. Federal loan borrowers who are eligible for a restitution payment of approximately $260 will receive a postcard in the mail from the settlement administrator later this spring.”
However, if you are a student loan borrower, you should make sure that your address is updated so that the settlement administrator can reach you. You can update your address at studentaid.gov.
If you or someone you know has trouble managing their student debt, call the Minnillo Law Group Co., LPA for a free student loan consultation.