Borrowers with student loans may be eligible for payments of up to $2,000 as part of a $120 million settlement the Consumer Financial Protection Bureau (CFPB) reached with significant lenders.
In 2024, the CFPB finalized an agreement with Navient after alleging that the Virginia-based loan servicer pressured students into expensive payment plans and didn’t inform them about more affordable alternatives.
Navient, while denying the allegations initially, agreed to pay a total of $120 million, which includes a $20 million penalty and $100 million in relief for affected borrowers.
Navient has yet to respond to inquiries for commentary.
Here’s what you should know about the ongoing payments.
Who qualifies for the payments?
According to the CFPB, when the lawsuit was initiated in 2017, Navient oversaw over 6 million student loan accounts under its agreement with the Department of Education.
The agency confirmed that borrowers harmed by Navient’s misleading guidance are entitled to compensation. They won’t need to take any extra steps to receive their payments.
However, the bureau has issued a warning about potential scams targeting borrowers, emphasizing that the CFPB will never ask consumers for money or personal information to receive a settlement.
When can you expect your payment?
The CFPB stated that payments to eligible borrowers began on February 13 and are ongoing.
Reports from consumers on platforms like Reddit indicate that checks have ranged from $100 to as much as $2,000.
What if you haven’t received your payment?
If you haven’t yet received a payment and think you may qualify, you can contact the management firm, Rust Consulting, that the CFPB has hired for this case. They can be reached via email at navient_info@rustcfpbconsumerprotection.org or by calling the toll-free number 1-800-711-8418.
It’s worth noting that the CFPB has been facing significant challenges since February of last year due to lawsuits regarding the status of its employees.
