Navient Settlement Checks: Which Borrowers Will Receive Payments

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Navient Settlement Checks: Which Borrowers Will Receive Payments

Some student loan borrowers receive checks in the mail for up to $2,000, which appear to be unavailable.

But it’s not a mistake. The payments are part of a year-old lawsuit between the Consumer Financial Protection Bureau (CFPB) and student loan servicer Navient. In a 2024 settlement, the CFPB under former President Joe Biden ordered Navient — formerly known as Sallie Mae — to pay $120 million for alleged misconduct that harmed borrowers. The agreement also prevented the company from servicing many student loans, even though the company had voluntarily stopped servicing them at the time.

Of that fine, $100 million is earmarked for direct repairs to affected borrowers. The CFPB, now under President Donald Trump, began sending checks to Navient on Feb. 13, according to an update on the agency’s website.

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“Affected consumers received a check as a result of the settlement of this case,” the CFPB’s review said. “The payments do not change or reduce any student loans affected consumers may have, and they should continue to work with student loan servicers.”

Neither the CFPB nor Rust Consulting, the firm responsible for the settlement, responded to Money’s request for comment.

What you need to know about Navient’s lawsuit

The case of CFPB v. Navient was initiated in January 2017 and settled in September 2024, but the settlement payments have only recently started to come out.

In the lawsuit, the CFPB alleges that Navient “unlawfully directed borrowers into forbearance, rather than income recovery programs.” During forbearance, borrowers’ payments were temporarily suspended, but they accrued interest on the loan and did not receive any of the benefits they would have received under an income-driven repayment plan. Most notably, they missed out on making accrued payments that could count toward forgiveness under income-driven programs, which allow borrowers’ outstanding balances to be canceled after completing several decades of payments.

“This practice was cheap and easy for Navient, but dangerous for borrowers,” the CFPB said at the time.

The agency also alleged that a subsidiary of Navient provided inaccurate credit reporting information to some borrowers, damaging their credit in the process.

Navient denied wrongdoing but agreed to the settlement and fine. Payments through the CFPB’s consumer settlement fund are not a class action, and affected borrowers have the right to take independent legal action against Navient.

How to get a Navient settlement payment

Borrowers who may be eligible for relief include those whose loans were serviced by Navient or Sallie Mae in 2017 or earlier. (Note that Sallie Mae split into two companies in 2014, after which Sallie Mae focused on private student loan innovation, while Navient focused on loan servicing.) The CFPB did not respond to Money’s request for how many borrowers are expected to receive settlement payments.

However, when the deal was announced in 2024, Biden officials said hundreds of thousands of borrowers would receive checks.

In most cases, borrowers are automatically identified and will not have to take action to receive the payment, which can range from $50 to $2,000.

While the automatic payment method helps ensure that eligible borrowers are paid, it also causes a few borrowers to question the “surprise check” on social media, questioning the validity of the check and the lack of information from the CFPB about eligibility.

For questions about the settlement, the CFPB directs borrowers to the settlement manager, Rust Consulting, and toll-free: