Navient Reaches $200 Million Settlement Over Bankruptcy Debt Collection Allegations

Borrowers Eligible for $16 Million Relief, Claims to be Filed by November 20

Navient, one of the largest private education loan companies in the U.S., has reached a nearly $200 million settlement on a case that alleged the company was collecting debt from borrowers that had been erased during bankruptcy.
The settlement includes a $182 million total worth of student debt wipe out and a fund of $16 million that will pay borrowers who had paid cash to Navient even after they had declared bankruptcy.
Student loan borrowers have until November 20 to file a claim with Navient to be eligible for a part of the $16 million relief.
There are two settlements available for Navient student loan users: the first one, which is worth $28 million, and the second, which is worth $16 million.
The second settlement will pay 20% to 100% of the damages suffered, including student loan payments made after Navient's bankruptcy.