Some student loan borrowers have 3 days to claim $16 million in settlement. Who qualifies?

Cortlynn Stark, The Sum
·2 min read
30

Student loan borrowers have three days to file a claim with Navient, part of a settlement agreement with the major private loan servicer.

Here’s what you need to know.

What happened?

Navient — formerly part of Sallie Mae and one of the largest servicers of federal and private student loans, according to the Consumer Financial Protection Bureau — agreed to a $198 million settlement with student loan borrowers whose loans were erased during bankruptcy but the company continued to collect. It no longer services loans for the Department of Education.

Navient denied wrongdoing.

The settlement includes $16 million for settlement class members and $182 million in relief for affected borrowers.

Who qualifies?

To qualify, you have to meet the following criteria:

  • You filed for bankruptcy protection on or after Oct. 17, 2005.

  • Before your bankruptcy filing, you were obligated to repay one or more private student loans as a borrower or a co-borrower.

  • The bankruptcy court issued an order of discharge for you.

  • You never reaffirmed your private student loans.

What do you get?

You could receive between 20 and 100% of the amount listed in the damages/post-discharge payments column on the claim form. Payments will be made after final approval from the court and after any appeals are resolved. The last appeal is scheduled for Dec. 13.

How can you file a claim?

You can file a claim online or by mail — it needs to be postmarked by Nov. 20. To file online, you’ll need the ID and PIN on the settlement notice. If you didn’t get a notice but believe you are eligible, you should contact the administrator at 866-848-0808.

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