Navient Settlement: What It Means for Federal Loan Borrowers and Compensation

for years naviant misled borrowers steering them into costly forbearance programs instead of more affordable repayment options like income driven plans after a long legal battle navat has finally reached a $120 million settlement with the Consumer Financial Protection Bureau as part of the settlement naet is now banned from servicing federal student loans so what this is me mean for affected borrowers if you were harmed by navi's actions there's good news eligible borrowers will automatically receive compensation no action is required on your part the cfpb will send checks directly to those who were impacted the settlement brings some long overdue Justice for borrowers who were misled by one of the largest Federal Loan servicers $100 million have been allocated for borrower compensation and naviant will pay an additional $2 million penalty this historic case puts an end to naviant involvement in federal student loan servicing and hopefully it serves as a reminder to all servicers to act in the best interest of borrowers so stay tuned for updates on when payments will be issued and any further details about settlement hey