If you’re a Navient borrower looking for student loan forgiveness options, you’re in the right place. This article will provide you with a comprehensive guide to the various programs available, depending on your loan type and situation.
We’ll start by discussing Navient’s private student loan forgiveness program, which offers relief to borrowers who were misled by their schools. You’ll learn what the program entails, how to determine if you’re eligible, and where to get the application.
But what if your application is denied? Don’t worry. We’ll also explore alternative options and strategies for seeking relief, even if you don’t qualify for the private loan forgiveness program.
If you have federal loans serviced by Navient, such as Federal Family Education Loan Program loans, we’ve got you covered there, too. We’ll dive into the one-time IDR account adjustment, Public Service Loan Forgiveness, and the SAVE Plan, so you can understand how these programs work and what steps you need to take to benefit from them.
Finally, we’ll provide context on other Navient student loan debt relief settlements, such as the state attorneys general debt cancellation and the bankruptcy settlement. These settlements have helped many borrowers eliminate some or all of their private student loan debt, and understanding their significance can be valuable for your own journey towards loan forgiveness.
By the end, you’ll have a clear understanding of the various Navient student loan forgiveness options available to you and the actionable steps you can take to start your path towards debt relief.
What it is: A program offered by Navient that allows borrowers who were misled by their schools to apply for private student loan forgiveness. This program is similar to the federal Borrower Defense to Repayment program but specifically for Navient private student loans.
Who’s eligible: Borrowers who took out private student loans from Navient and experienced school misconduct or misrepresentation. Examples of school misconduct include false promises about job placement rates, earning potential, or the transferability of credits. Eligibility is not based on employment, income, or financial hardship. However, borrowers who have already paid off their loans in full, settled, or refinanced are not eligible.
How it differs from federal loan forgiveness: The Navient private student loan forgiveness program shares similarities with the federal Borrower Defense to Repayment program, which has helped many borrowers who attended schools like the Art Institutes to discharge their federal student loans.
Note that Navient’s program is a separate initiative specifically designed for private student loans.
If you’ve already had your federal loans forgiven through the Art Institutes Borrower Defense program, you may still be eligible for Navient’s private student loan forgiveness. Keep in mind that other federal student loan forgiveness programs, such as Public Service Loan Forgiveness or Income-Driven Repayment forgiveness, are not available for private student loans.
When it started: The exact start date of the program is unclear, as Navient has not widely publicized it. However, the program gained attention in 2024 when the Project on Predatory Student Lending and the New York Times began raising awareness about it.
Legal basis: The program is based on the holder-in-due-course rule, a 1975 Federal Trade Commission regulation that allows borrowers to contest their debt if the goods or services they purchased were fraudulent.
Current Status: Ongoing. Navient’s private student loan forgiveness program is still active, and eligible borrowers can apply for relief by contacting Navient and submitting the required application and supporting documentation.
Step 1: Contact Navient: To begin the application process, you must reach out to Navient to request the school misconduct discharge application. You can do this by calling Navient’s customer service line at 888-545-4199 ext. 998214 or by sending an email to advocate@navient.com.
If Navient refuses to give you an application or takes too long to send it to you, consider filing a complaint with the CFPB. In our experience, this can be an effective way to expedite the process. One of our clients received her application the next business day after filing a complaint.
Step 2: Complete the Application: The school misconduct discharge application requires you to provide a detailed explanation of how your school misled you or engaged in misconduct. Be thorough and specific in your explanation, outlining the false promises, misrepresentations, or deceptive practices that influenced your decision to take out private student loans. You can refer to this sample of the Navient Private Student Loan Discharge Application for guidance.
Step 3: Gather Supporting Documentation: To strengthen your case, collect and submit relevant documentation that supports your claims of school misconduct. This may include marketing materials, enrollment agreements, email correspondence, or other evidence that demonstrates your school’s deceptive practices.
Step 4: Submit the Application: Once you have completed the application and gathered all supporting documentation, submit the package to Navient for review. You can submit the application via mail or email, depending on Navient’s specified submission process.
What to expect after submitting your application: After submitting your application, Navient will review your case and make a determination on your eligibility for loan forgiveness. The timeline for this process may vary, so stay in contact with Navient for updates on the status of your application.
Several factors can impact your likelihood of being approved for Navient’s private student loan forgiveness program:
As a student loan lawyer who has assisted clients in applying for and receiving approval for Navient’s private student loan forgiveness program, I’ve found that the following strategies can significantly improve a borrower’s chances of success:
Borrowers may face challenges when seeking evidence or navigating the application process for Navient’s private student loan forgiveness program. Some common obstacles include:
What to expect: After submitting your application for Navient’s private student loan forgiveness program, the company will review your case to determine your eligibility for relief. The exact timeline for processing applications may vary, but borrowers should generally expect the review process to take several weeks to a few months.
Factors affecting review time: The length of the review process can depend on various factors, such as:
Communication during the review process: During the review process, Navient may contact you if they require additional information or clarification regarding your application. It’s crucial to respond promptly to any such requests to avoid delays in the decision-making process. You can also proactively reach out to Navient for updates on the status of your application, but keep in mind that frequent inquiries may not necessarily expedite the process.
When you’ll receive a decision: Once Navient has completed its review of your application, they will notify you of the outcome via mail or email. The time it takes to receive a decision after submitting your application can vary, but most borrowers can expect to hear back within a few months.
Potential outcomes:
If you are not eligible for Navient’s private student loan forgiveness program or if your application is denied, there are still several options to consider:
In addition to the options listed above, there are various resources and support services available to help you:
What it is: In addition to Navient’s private student loan forgiveness program, there are also debt relief options for the federal student loans it services, particularly those made under the Federal Family Education Loan (FFEL) Program.
The biggest relief program is the one-time IDR account adjustment. This program was launched by President Biden last year. It helps borrowers get closer to loan forgiveness by providing credit for past periods of repayment, deferment, and forbearance.
How it works: The payment count adjustment is a program that will count time towards IDR forgiveness, PSLF Program forgiveness, and SAVE Plan Forgiveness, even if you weren’t on an IDR plan. It will give you credit for:
Who’s eligible: Borrowers with privately held FFEL Program loans serviced by Navient may be eligible for the IDR account adjustment and Public Service Loan Forgiveness if they consolidate their loans into a Direct Consolidation Loan.
FFEL Loans are loans were made by private lenders but guaranteed or federally backed by the federal government. In your Navient account, they may be labeled as FFEL Stafford Subsidized, FFEL Stafford Unsubsidized, FFEL PLUS, or FFEL Consolidation loans. The FFEL Program ended in 2010, so if you borrowed before that time, there’s a chance you have these types of loans.
Even if you have a single FFEL Consolidation Loan, you can still reconsolidate if you meet one of the following conditions:
How to apply: To consolidate your Navient FFEL Program loans into a Direct Consolidation Loan, visit the Federal Student Aid website, StudentAid.gov. Sign in using your FSA ID, and complete the Direct Consolidation Loan application. Select the FFEL loans you want to consolidate and submit your application electronically.
SAVE Plan eligibility: Once you consolidate your Navient FFEL loans into a Direct Consolidation Loan, you become eligible for the SAVE Plan. This income-driven repayment plan offers lower monthly payments and loan forgiveness after 10 years if you originally borrowed less than $12,000.
When forgiveness starts: The forgiveness options for consolidated FFEL loans are ongoing. After you consolidate, the U.S. Department of Education will review your account for credit under the one-time IDR account adjustment. You may qualify for:
How much loan cancellation: All three programs will eliminate your remaining balance. The amount forgiven is tax free through 2025.
Current status: The opportunity to consolidate your Navient FFEL Program loans and benefit from the IDR account adjustment and potential PSLF eligibility is ongoing. But the one-time IDR account adjustment ends on June 30, 2024. To take advantage of this benefit, submit your Direct Consolidation Loan application by that date.
