Millions in Checks Go Out in Student Loan Servicer Settlement

Navient, which formerly handled student loan accounts, is paying $100 million to compensate eligible borrowers.

The headquarters of former student loan debt collector Navient Corporation in Wilmington, Del., on April 2, 2014. William Bretzger/The Wilmington News-Journal via AP

Settlement checks are being sent to federal student loan borrowers affected by a long-running case involving former loan servicer Navient.

Under a final judgment entered in 2024, Navient is paying out $120 million to settle allegations by the Consumer Financial Protection Bureau (CFPB) that it engaged in widespread servicing failures. Payments, including $100 million to affected borrowers, began on Feb. 13, according to the settlement.