People are so confused by the announcement of the giant Navient student loan $1.7 billion settlement. See my post on the announcement, here.
Here is the reality, even the Aidvantage website is punting on what this actually means. The website says people need to go to NavientAGSettlement.com for information.
I know you are looking for specific answers but there just is no clarity. All we know is the limited information that appeared in announcements about the settlement. However, what we don’t know is what the actual policies and procedures of the settlement will be.
Even the NavientAGSettlement site says “Borrowers do not need to take any action to receive relief under this settlement. In Spring 2022, the settlement administrator will send a postcard to each federal loan borrower eligible for a restitution payment, using the most current address on file with the U.S. Department of Education.”
So that means the best anyone can do right now is sit tight and wait for more information.
The settlement as announced is full of so many holes and little information that it is extremely frustrating. What are people supposed to do before July of 2022 when it is said postcards must be mailed by.
Even for private student loans that might fall under this settlement, the public information available right now says “Navient will notify eligible private loan borrowers of the discharge of their private loans in writing by July 2022. Consumers who are eligible for the private loan cancellation under the settlement do not need to take any action.”
One Such Information Hole
The settlement administrator site says, “Generally, to be eligible for private loan debt relief, the loan must have been in past due status for more than seven consecutive months prior to June 30, 2021.”
But what if you were delinquent and either refinanced the loan or settled it before June 30, 2021? If you were five months behind and then paid it off, are you eligible?
I don’t know the answer and it appears nobody else does either.
So, the best advice I can give you is to consider doing one of the following things:
- Watch your mailbox in the spring of 2022 for a postcard to your address on file with Navient and/or Aidvantage.
- Contact Damon Day, my debt coach friend, that is providing real-time advice to his clients.
- Contact your servicer and try to get some actionable information. Good luck with that.