Navient Loan Forgiveness Class Action Settlement

UPDATE: The Navient Loan Forgiveness Class Action Settlement was granted final approval on October 9, 2020. Top Class Actions will continue to provide updates as we learn more.  

Individuals with a Navient loan may be able to benefit from a $2.4 million settlement resolving claims that the lender misled consumers about loan forgiveness.

The settlement benefits individuals who had Federal Family Education loans or Direct Loans serviced by Navient, were eligible for public service loan forgiveness due to current or former full time employment, and spoke to a Navient customer service representative about Navient loan forgiveness since Oct. 1, 2007. This settlement Class is estimated to include 324,900 people.

Plaintiffs filed their Navient loan forgiveness class action lawsuit in October 2018. According to the plaintiffs, the federal loan servicer misled borrowers about public service loan forgiveness – causing consumers to overpay on their student loans.

The plaintiffs argue that Navient knew that certain borrowers were eligible for public service loan forgiveness based on their employment. However, despite this knowledge, Navient allegedly failed to give information to borrowers about how they could capitalize on this opportunity. As a result, Class Members reportedly paid higher payments on their student loans which could have been forgiven.

“Navient has not been living up to its obligation to help vulnerable borrowers get on the best possible repayment plan and qualify for PSLF,” the Navient loan forgiveness class action lawsuit contends.

“Instead, Navient has harmed and continues to harm millions of hard-working public servants by routinely providing false information to these borrowers, preventing them from qualifying for the PSLF program.”

According to the Navient loan forgiveness class action lawsuit, Navient intentionally misled consumers in order to secure higher profits. Navient has not admitted any wrongdoing but has agreed to resolve the claims against them in a $2.4 million settlement.

There are no monetary benefits provided by the Navient loan forgiveness class action settlement. Instead, Navient has agreed to adopt new practices to better inform eligible customers about student loan forgiveness and streamline the process for borrowers. The company will also contribute $1.75 million to a newly formed non-profit organization which will benefit Class Members.

No claim form is required to benefit from the Navient loan forgiveness class action settlement. Due to the types of benefits provided by the settlement, Class Members cannot exclude themselves from the settlement Class. However, this will not void a Class Member’s right to file an individual lawsuit against Navient for monetary damages.

Instead of filing a claim or excluding themselves, Class Members have until Sept. 11, 2020 to object to the settlement. Objecting to the settlement allows Class Members to voice their opinions on the settlement, dispute various terms, or even urge the court not to approve the deal.

In order to object to the settlement, Class Members must send their objection letter to the settlement administrator. Letters must include the name of the case, personal information, proof that Class Members are eligible for the settlement, a detailed objection statement, relevant documents, and other information. Further direction about objecting to the settlement is available on the settlement website.

The final approval hearing for the settlement is scheduled for Oct. 2, 2020. Although the hearing will be held via videoconference, the proceedings are open for listening by the public. If Class Members or their lawyers wish to speak at the settlement hearing, they must submit a written notice of appearance by Sept. 11, 2020.

Who’s Eligible

Individuals who had Federal Family Education loans or Direct Loans serviced by Navient, were eligible for public service loan forgiveness due to current or former full time employment, and spoke to a Navient customer service representative about Navient loan forgiveness since Oct. 1, 2007.

Potential Award

Non-monetary relief.

Navient has agreed to adopt new practices to better inform eligible customers about student loan forgiveness and streamline the process for borrowers. The company will also contribute $1.75 million to a newly-formed non-profit organization which will benefit Class Members.

Proof of Purchase

N/A

Claim Form

There is no Claim Form for this settlement. Class Members with further questions can click here for more information.

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Objection Deadline

9/11/2020

Case Name

Kathryn Hyland, et al. v. Navient Corporation, et al., Case No. 1:18-cv-09031-DLC, in the U.S. District Court for the Southern District of New York

Final Hearing

10/2/2020

Settlement Website

PSLFSettlement.com

Claims Administrator

Settlement Administrator
c/o Rust Consulting, Inc. – 6972
P.O. Box 44
Minneapolis, MN 55440-0044
info@PSLFSettlement.com
1-877-906-1589

Class Counsel

Faith Gay
Maria Ginzburg
Lena Konanova
Margaret Siller
SELENDY & GAY PLLC

Mark Richard
PHILLIPS, RICHARD & RIND PA

Defense Counsel

Ashley M. Simonsen
COVINGTON & BURLING LLP

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