Home Business Navient is forgiving student debt of 66,000 borrowers. Are you one of them?

Navient is forgiving student debt of 66,000 borrowers. Are you one of them?

5 min read

There was a great deal of interest in the recent news that Navient, one of the largest student loan servicers, would be canceling the debt of 66,000 borrowers.

The main question people had: Am I one of them?

Probably not, is the short answer.

Just around 0.15% of the country’s student loan borrowers will get their debt cleared from the settlement between the lender and dozens of states.

Navient was accused of giving out loans to those who couldn’t afford to repay them. Under the agreement’s terms, another 350,000 federal student loan borrowers will get a small check in the mail from the company.

More from Personal Finance:
Here’s what to know about your 2022 Medicare costs
How rising inflation may affect your 2021 tax bill
Retirees need to keep this much cash, advisors say

Navient has denied all allegations.

“The company’s decision to resolve these matters, which were based on unfounded claims, allows us to avoid the additional burden, expense, time and distraction to prevail in court,” said Navient’s chief legal officer Mark Heleen, in a statement.

Here are the details of the settlement, including who will actually get the relief.

Which loans will be canceled?

Another group that will get the cancellation are those with private student loans from Sallie Mae who attended certain for-profit colleges that have faced federal or state law enforcement action.

Navient should contact impacted borrowers by July 2022.

Who will get a check?

Among the accusations made against Navient was that the lender steered some consumers into costly forbearances rather than helping them to find a more affordable repayment option.

As a result, the company is required to write a check for approximately $260 to some 350,000 borrowers.

To qualify for the payment, you also have to meet a number of other requirements. Those include: You were enrolled in at least two consecutive years of forbearances between October 2009 and January 2017, you entered repayment before January 2015 and at least one of your federal loans was eligible for a payment plan that caps bills at a share of your monthly income.

The restitution should be paid out sometime in the spring.

Do I have to do anything?

So what’s going on with broad forgiveness?

Loan forgiveness has also been left out of Democrats’ Build Back Better agenda.

The White House did not respond to a request for comment.

Source link

Load More Related Articles
Load More By The Texas Chronicle
Load More In Business

Leave a Reply

Your email address will not be published. Required fields are marked *

Check Also

BlackRock downgrades stocks, citing Fed over-tightening and China risk

With the Federal Reserve’s tightening cycle underway and a slowdown in China that ri…