The 2022 Navient Settlement
In January 2022, Navient settled with 39 state attorneys general for $1.85 billion. The settlement resolved allegations that Navient steered borrowers into costly forbearance instead of income-driven repayment plans, misrepresented modification options, and engaged in predatory private student lending at for-profit schools.
The settlement provided $1.7 billion in private student loan debt cancellation for approximately 66,000 borrowers, and $95 million in restitution payments to approximately 350,000 federal loan borrowers improperly directed into forbearance.
Predatory Lending Claims
Sallie Mae's private student loans -- especially to students at for-profit schools -- carried high interest rates and were made to borrowers with limited repayment ability. Private student loans have fewer protections than federal loans: no income-driven repayment, no forgiveness programs, and harsh collection remedies. Borrowers allege they were misled about these differences. Related: MOHELA PSLF servicing failures.
Who Qualifies for Current Relief
Borrowers who received automatic debt cancellation under the 2022 settlement should have been notified. Federal loan borrowers directed into forbearance may be entitled to account adjustments. Check the Navient settlement website and your servicer account.
Status 2026
The Navient settlement is being administered. New servicer claims and student loan landscape litigation continues.
How to Get Legal Help
If you believe you qualify based on the eligibility criteria described above, the next step is a free consultation with an experienced attorney. Most plaintiff-side attorneys handling these cases work on contingency -- meaning you pay nothing unless your case results in a recovery. Bring any relevant documentation including receipts, correspondence, or evidence of the harm you experienced.
To stay current on case developments, claim deadlines, and settlement news, bookmark this page and subscribe to LawsuitWatch alerts. Coverage is updated as new court filings, settlement announcements, and eligibility changes are made public.
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Sallie Mae / Navient Lawsuit: Student Loan Servicing & Predatory Lending: Frequently Asked Questions
Answers to the most common questions about this case and your legal options.
Did Navient settle a lawsuit?
Yes. Navient settled with 39 state AGs in January 2022 for $1.85 billion.
How do I know if I qualify for Navient debt cancellation?
Borrowers who received private Sallie Mae/Navient loans at certain for-profit schools received automatic cancellation. Check the settlement website and Navient account statements.
Is Sallie Mae the same as Navient?
Sallie Mae and Navient split into separate companies in 2014. Sallie Mae handles new private lending; Navient handles loan servicing.
Can I still sue Navient?
For claims not covered by the 2022 settlement, individual claims may still be viable. Consult a student loan attorney.
What is income-driven repayment?
Federal loan plans that cap monthly payments at a percentage of income and forgive remaining balances after 20-25 years.