Navient Solutions Settlement

A class action lawsuit against Navient Solutions, LLC, alleging that certain private student loans are dischargeable in bankruptcy, has been settled. The lawsuit claims that the amount disbursed on the loans exceeded the borrower's "Cost of Attendance."

The $198.4 Million Settlement

The lawsuit against Navient Solutions, LLC, was filed by individuals who had filed for bankruptcy protection on or after October 17, 2005, and were obligated to repay one or more Private Student Loans before their bankruptcy filing. The suit alleges that these loans should have been discharged during bankruptcy because the loan amount exceeded the borrower's "Cost of Attendance."

The settlement proposed by Navient Solutions, LLC, offers three potential benefits to class members. First, Navient will forego collection of certain outstanding balances on Private Student Loans listed in the Claim Form. Second, class members may be eligible for repayment of all or a portion of any amounts they have paid to Navient on their Private Student Loans listed in the Claim Form since the date of discharge. Third, Navient will either delete or update trade line information about Private Student Loans listed in the Claim Form with credit-reporting agencies.

According to the Settlement Agreement, "the total value of the Settlement to the Class is at least $198.4 million, comprised of $182.4 million in debt relief, $16 million in cash, and credit remediation, the value of which is non-quantifiable at this time but which has the potential to have a long-term, positive impact on Class Members’ borrowing capacities."

Key Dates in the Navient Solutions Settlement

• Deadline to File a Claim: November 20, 2023. Class members must submit a Claim Form by this date to be eligible for the benefits of the settlement.
• Final Approval Date: December 13, 2023 at 11:00 a.m.

Who Are the Class Members?

The class members in this lawsuit are individuals who meet specific criteria. They must have filed for bankruptcy protection on or after October 17, 2005, and became obligated to repay one or more Private Student Loans before their bankruptcy filing. Additionally, they must have obtained an order of discharge issued by the bankruptcy court in their bankruptcy case and have never reaffirmed their Private Student Loans.

Class members who wish to exclude themselves from the settlement must submit a written request by November 13, 2023. By excluding themselves, they will not be eligible for any benefits or payments from the settlement but will retain their right to sue or continue to sue the defendants.

What Can Class Members Claim?

Class members can claim three potential benefits from this settlement. First, Navient will forego collection of certain outstanding balances on Private Student Loans listed in the Claim Form. The impact of the settlement on each loan is specified in the Claim Form.

Second, class members may be eligible for repayment of all or a portion of any amounts they have paid to Navient on their Private Student Loans listed in the Claim Form since the date of discharge. To receive this benefit, class members must submit a Claim Form.

Third, Navient will either delete or update trade line information about Private Student Loans listed in the Claim Form with credit-reporting agencies.

Is Proof Required to Claim the Reward?

Yes, proof is required to claim the reward. Claimants must submit to the Settlement Administrator a completed Title IV Claim Form.

Why Is There a Class Action Settlement?

The class action settlement arises from a lawsuit that alleges that certain private student loans are dischargeable in bankruptcy. The lawsuit claims that the amount disbursed on the loans exceeded the borrower's "Cost of Attendance." Navient Solutions, LLC, has proposed a settlement that offers three potential benefits to class members.