--- title: Student Loan Borrowers to Get Relief Checks After $120 Million Navient Settlement description: The student loan servicer was fined by the CFPB for allegedly misleading borrowers, with $100 million for relief checks for those affected. authors: - name: Adam Hardy role: Lead Data Reporter url: https://money.com/author/adam-hardy/ bio: Adam Hardy is a lead data journalist at Money, where he frequently reports on financial barriers that affect low-income Americans. Adam’s work has also appeared in Business Insider, Forbes, Nasdaq, The Penny Hoarder, Yahoo! Finance and more than a dozen local and regional newspapers. education: University of South Florida, BA, Magazine Journalism at_money_since: 2021 articles: 501 covers: - Personal Finance - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Pets - Professional Services - Retirement - Shopping - Taxes - Technology also_seen_in: - The Penny Hoarder - Forbes Advisor - Creative Loafing - The New York Times - The Washington Post - Bloomberg - Harvard Law School - The Federal Register - National Consumer Law Center - CBS News - Becker's Hospital Review - Business Insider - Mother Jones - The Week - Fortune - The Philadelphia Inquirer - National Association of Student Financial Aid Administrators (NAFSAA) - Education Advisory Board (EAB) - The Institute for College Access & Success (TICAS) - This Morning with Gordon Deal - Empower - Reddit social: - https://www.x.com/hardyjournalism - https://www.linkedin.com/in/hardyjournalism/ editors: - name: Kaitlin Mulhere role: Editor url: https://money.com/author/kaitlin-mulhere/ bio: Kaitlin Mulhere has been covering the intersection of college and personal finance since 2015. She enjoys breaking down the complexities of college costs and financial aid, and she also runs Money’s Best Colleges. education: University of Florida at_money_since: 2015 articles: 217 covers: - Personal Finance - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Retirement - Shopping - Taxes social: - https://twitter.com/KMulhere - https://www.linkedin.com/in/kaitlin-mulhere-64503048/ published: '2024-09-12T18:06:22.000Z' modified: '2024-09-12T18:06:22.000Z' section: Personal Finance word_count: 726 canonical: https://money.com/navient-student-loans-settlement-payments/ type: Article source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Photo Collage of college students working on their computer with a Navient building in the background](https://img.money.com/2024/09/News-Navient-Settlement.jpg) The federal government is ordering student loan servicer Navient to pay a hefty fine aimed at redressing exploited borrowers. The Consumer Financial Protection Bureau (CFPB) [filed a proposed order](https://files.consumerfinance.gov/f/documents/cfpb_proposed-stipulated-final-judgment-and-order-navient_2024-09.pdf) Thursday against Navient, fining the financial firm $120 million and recommending it be permanently banned from servicing federal student loans. Part of that money is earmarked for direct compensation to student loan borrowers who the consumer protection agency says were harmed. “For years, Navient’s top executives profited handsomely by exploiting students and taxpayers,” said CFPB Director Rohit Chopra in an [announcement](https://www.consumerfinance.gov/about-us/newsroom/cfpb-bans-navient-from-federal-student-loan-servicing-and-orders-the-company-to-pay-120-million-for-wide-ranging-student-lending-failures/). The proposed order is the outcome of a protracted legal battle between the CFPB and Navient, spanning three presidential administrations. ## Take control of your student loans today! ### Refinancing your Student Loans could save you money on interest, help pay off your loan faster and even free up extra cash in your budget. Why wait? Click on your state to get started today! [See Details](https://money.com/pr/z75814e16c7f?ap_referrer=%2Fnavient-student-loans-settlement-payments%2F) In 2017, the CFPB’s lawsuit alleged that Navient — which was the largest student loan servicer in the nation at the time — steered borrowers into more expensive repayment plans and interest-accruing forbearance periods, provided bad information to borrowers, processed borrowers’ payments incorrectly and did not adequately address formal complaints lodged by borrowers to the CFPB. Navient disputes these allegations but has agreed to settle the matter. “This is the end of one of the longest-running government enforcement actions against a major financial firm in U.S. history,” [tweeted](https://twitter.com/millennial_debt/status/1834211680907038843) Mike Pierce, head of advocacy group Student Borrower Protection Center, or SPBC. He later added in a SPBC [statement](https://protectborrowers.org/navient-corporation-permanently-banned-from-federal-student-loan-servicing-market-ordered-to-pay-100-million-to-cheated-borrowers/) that the federal lawsuit uncovered evidence that helped inform President Joe Biden's student loan payment recount program and contributed to the forgiveness of over $50 billion of federal student loans held by more than a million borrowers. Navient has racked up over 41,000 formal [complaints](https://www.consumerfinance.gov/data-research/consumer-complaints/search/?date_received_max=2024-07-17&date_received_min=2011-12-01&page=1&searchField=all&searchText=Navient&size=25&sort=created_date_desc&tab=List) in the CFPB database — far outpacing all general student loan complaints, which total about 23,000. In 2021, Navient’s federal student loan servicing contract with the Department of Education expired. Since then, the company has sought to distance itself from student loan servicing altogether. Earlier this year, the firm told investors that it would offload legacy student loans in its portfolio — an estimated $8 billion as of 2023 — to another servicer, MOHELA. Meanwhile, Navient has been shifting its focus toward other ventures, including [student loan refinancing](https://money.com/best-student-loan-refinance/) as well as outsourcing and consulting services for businesses, while new private loans are being handled by its subsidiary Earnest. Though Navient agreed to the order, it’s not technically finalized yet. Unlike recent enforcement actions from the CFPB, the Navient order is subject to approval by a federal court in Pennsylvania, where the order was filed on Thursday. “This agreement puts these decade-old issues behind us,” Navient said in response to the filing, noting that the firm does not agree with the allegations and that it no longer services or purchases federal student loans. ## Borrowers could get direct relief by check Borrowers potentially eligible for relief include those whose loans were serviced by Navient. Exact estimates have not been released yet, though officials told reporters on a press call that hundreds of thousands of borrowers are expected to receive checks. Of the $120 million in fines ordered by the CFPB, about $100 million is intended to directly go to borrowers who were affected by Navient’s alleged deceptive practices. The other $20 million will go to a more general victim’s relief fund, which pays out to consumers who were harmed by other companies that were penalized by the CFPB. The CFPB says that checks will be mailed out automatically in most cases. Sometimes more information is needed to determine eligibility for relief, and the [agency says](https://www.consumerfinance.gov/about-us/blog/got-check-mail-cfpb-heres-how-tell-if-its-legit/) it may send out claim forms by mail or email. However, the agency will never ask for payment to receive relief. If (or when) the order is entered by the federal court in Pennsylvania, Navient will have 10 days to pay the CFPB fines in full, and the reimbursement process will begin from there. Borrowers can check from a [list of active CFPB relief measures](https://www.consumerfinance.gov/enforcement/payments-harmed-consumers/payments-by-case/) to verify the disbursement process and timeline or call (855) 411-2372 directly to confirm that the check — or a potential request for more information — is legitimate. Unlike class action lawsuits, receiving disbursements from the CFPB’s victim’s relief fund does not bar recipients from pursuing further legal action against the company. ## Compare Student Loan Refinance rates today ### Get pre-approved in 2 minutes ![See Details](https://s3.consumersadvocate.org/prd/image/image/26621/medium_18b55bcd-82cd-4d73-b404-97711fd4a5e7.png) Our Partner [See Details](https://money.com/go/f444f677ff59?bidid=4118607227&pmeta=p129-c524-u27951&ptid=671135022&ptoken=49b56d41bd1204728b3f2af29e849112) ### Compare multiple lenders ![See Details](https://s3.consumersadvocate.org/prd/image/image/38966/medium_752a1e55-4e21-4d57-a49f-43d51659e66b.webp) Our Partner [See Details](https://money.com/go/baca55b310e8?bidid=4118607226&pmeta=p129-c524-u27951&ptid=671135022&ptoken=3092cbbc030cf1aaac3fbed29bbb089b) ### Low-interest rates & a variety of repayment options ![See Details](https://s3.consumersadvocate.org/prd/image/image/28522/medium_d9060e39-6dbd-420c-9b34-621585e2f2ac.png) Our Partner [See Details](https://money.com/go/1e757be6225b?bidid=4118607232&pmeta=p129-c524-u27951&ptid=671135022&ptoken=df56ca6271867d93e694f20f88c0d7b9) ### Consolidate federal & private loans ![See Details](https://s3.consumersadvocate.org/prd/image/image/22270/medium_29794957-e55c-4470-9680-6dee519667e1.png) Our Partner [See Details](https://money.com/go/d44739a056f0?bidid=4118607231&pmeta=p129-c524-u27951&ptid=671135022&ptoken=01d9a4c9607e62f24631ed6af49f6b27) ![See Details](https://s3.consumersadvocate.org/prd/image/image/38975/medium_fada6d3e-7950-482c-b365-f29d6aee9f01.webp) Our Partner [See Details](https://money.com/go/600eefebb969?bidid=4118607234&pmeta=p129-c524-u27951&ptid=671135022&ptoken=b15f21eab122593227017bcd1f937821) ![](https://s3.consumersadvocate.org/prd/image/image/26621/medium_18b55bcd-82cd-4d73-b404-97711fd4a5e7.png) Refinance your Student Loan with SoFi today! [See Details](https://money.com/pr/odc45b263191?ap_referrer=%2Fnavient-student-loans-settlement-payments%2F) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/navient-student-loans-settlement-payments/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Personal Finance", "item": "https://money.com/personal-finance/" }, { "@type": "ListItem", "position": 3, "name": "Student Loan Debt", "item": "https://money.com/student-loan-debt/" }, { "@type": "ListItem", "position": 4, "name": "Student Loan Borrowers to Get Relief Checks After $120 Million Navient Settlement" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/navient-student-loans-settlement-payments/#webpage", "url": "https://money.com/navient-student-loans-settlement-payments/", "name": "Student Loan Borrowers to Get Relief Checks After $120 Million Navient Settlement", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2024-09-12T18:06:22.000Z", "mainEntity": { "@id": "https://money.com/navient-student-loans-settlement-payments/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/navient-student-loans-settlement-payments/#breadcrumb" }, "dateModified": "2024-09-12T18:06:22.000Z" }, { "@type": "Article", "headline": "Student Loan Borrowers to Get Relief Checks After $120 Million Navient Settlement", "articleSection": "Personal Finance", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2024/09/News-Navient-Settlement.jpg", "width": 3200, "height": 2133, "caption": "News-Navient-Settlement" } ], "author": [ { "@type": "Person", "name": "Adam Hardy", "url": "https://money.com/author/adam-hardy/", "@id": "https://money.com/author/adam-hardy/#author", "description": "Adam Hardy is a lead data journalist at Money, where he frequently reports on financial barriers that affect low-income Americans. 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