Navient Lawsuit Settlement Payments 2025–2026, $100 million CFPB Settlement Fund Payments Began February 13, 2026 What to Expect

If Navient serviced your federal student loans and you were steered into forbearance instead of an income-driven repayment plan, you may receive a check automatically from the $100 million CFPB settlement fund. No claim form is required for most borrowers. Payments began February 13, 2026, and are ongoing. The official settlement administrator is Rust Consulting, reachable at 1-800-711-8418.

Key Dates

What This Case Is About

The Consumer Financial Protection Bureau (CFPB) sued Navient in January 2017, accusing the student loan servicer of systematically steering borrowers into expensive long-term forbearances rather than explaining more affordable income-driven repayment (IDR) plans. The case also alleged that Navient misapplied payments to the wrong loans, damaged borrowers’ credit reports, and misled cosigners about how to be released from loans.

Navient disputes the allegations but agreed to settle. The case is formally titled CFPB v. Navient Corporation, Navient Solutions, LLC, and Pioneer Credit Recovery, Inc., Case No. 3:17-cv-00101-RDM, in the U.S. District Court for the Middle District of Pennsylvania.

Settlement Amount Breakdown

This settlement is not a traditional class action where a claims administrator divides a pot of money among claimants who file forms. Instead, the CFPB itself administers the payments, using its authority to identify and compensate harmed borrowers directly from the fund.

The financial breakdown is as follows:

Total settlement order: $120 million

• $100 million → Consumer redress fund (direct checks to harmed borrowers)
• $20 million → Civil penalty paid to the CFPB’s victims relief fund

The $20 million penalty is separate from the $100 million consumer redress pool. Only the $100 million is being distributed as direct payments to individual borrowers. The CFPB has not publicly disclosed specific attorney fee deductions or separate administration cost figures for this consumer redress fund, as this is a regulatory enforcement action rather than a private class action. The CFPB contracted Rust Consulting to handle payment distribution and borrower inquiries.

Who Is Eligible for a Payment

The CFPB has not published a detailed public eligibility list, but based on the court order and official case documentation, borrowers most likely to receive checks are those who meet the following criteria:

You may be eligible if you:

• Had federal student loans serviced by Navient (or its predecessor Sallie Mae) at some point between 2009 and 2017
• Were placed in long-term forbearance — particularly repeated or extended forbearances — rather than being enrolled in an income-driven repayment plan
• Had your loan payments misapplied to the wrong loans or accounts
• Had negative information incorrectly reported to credit bureaus by Navient or its debt collection subsidiary, Pioneer Credit Recovery
• Had a discharged student loan incorrectly reported as a debt by Pioneer Credit Recovery
• Experienced cosigner release issues due to misleading information from Navient

Loan types covered include:

• Federal Direct Loans serviced by Navient under its Department of Education contract
• Federal Family Education Loan (FFEL) Program loans serviced by Navient

You do not need to apply. The CFPB, using Navient’s own borrower records, identifies eligible individuals and mails checks automatically.

Who Is NOT Eligible

You are likely not eligible if:

• Navient never serviced your federal student loans
• Your loans were private student loans only (this settlement covers Navient’s federal loan servicing failures — a separate 2022 state attorneys general settlement addressed private loan issues)
• You already received full relief under the 2022 multistate $1.85 billion settlement, which included approximately $260 each to 350,000 federal borrowers who were steered into forbearance
• Your loans were transferred to Aidvantage (Maximus) before any relevant harm occurred under Navient’s servicing

Common misunderstanding: The 2024 CFPB order does not cancel or reduce your remaining student loan balance. Payments are separate compensation checks for past harm. Your loans remain with your current servicer.

Watch for scams: The CFPB will never ask you to pay a fee or provide new personal information before mailing you a redress check. Any contact demanding payment to release your settlement check is fraudulent.

How Much Could You Receive?

The CFPB has not published individual payment amounts, and the exact per-borrower figure depends on how many borrowers are identified as eligible and the severity of harm to each. Here is what is publicly known:

Total redress fund: $100 million Estimated number of recipients: Hundreds of thousands of borrowers (per CFPB officials during a September 2024 press call)

If, for example, 400,000 borrowers receive equal shares, the average payment would be approximately $250 per person. If 200,000 borrowers qualify, the average rises to roughly $500 per person. These are illustrative estimates only. The CFPB has not confirmed a per-share value or tiered structure. Payments may vary based on the extent of harm documented in each borrower’s account history.

For comparison, the 2022 multistate settlement that addressed similar forbearance steering paid eligible borrowers roughly $260 each.

Important: Payment amounts are not yet confirmed. The CFPB will determine and distribute payments on a rolling basis starting from February 13, 2026.

How Payments Are Being Made — No Action Required

This settlement works differently from a typical class action:

1. The CFPB identifies you using Navient’s borrower records — you do not need to submit a claim form.
2. Rust Consulting, the CFPB’s contracted payment administrator, mails checks to eligible borrowers at their address on file.
3. If the CFPB needs additional information to confirm your eligibility, it may send a claim form by mail or email. This is the only circumstance in which you may need to respond.
4. You cash the check. No payment to anyone is ever required. No personal information is needed to cash the check.

To update your mailing address or check on your status, contact Rust Consulting directly:

• Phone: 1-800-711-8418 (toll-free)
• Email: [email protected]
• Mail: CFPB v Navient, P.O. Box 2561, Faribault, MN 55021-9561

What You Must Know Before Cashing a Check

Tax note: Settlement payments related to interest overcharges or financial harm may have tax implications. This article does not provide tax advice. Consult a tax professional about whether your payment is taxable income.

Your loans are not reduced: These checks are compensation for past harm only. They do not affect your outstanding loan balance, interest rate, or repayment status in any way.

Payment timing: Payments began on February 13, 2026, and are being distributed on a rolling basis. Not all eligible borrowers will receive checks at the same time.

If you never received a 2022 settlement check: Some borrowers who were included in the 2022 state AG settlement may also qualify for this CFPB settlement depending on the specific violations involved. The two settlements address overlapping but distinct conduct.

Frequently Asked Questions

Do I need to file a claim to get a payment? 

No. The CFPB automatically identifies eligible borrowers and mails checks. You may only need to respond if the CFPB sends you a specific claim form requesting more information.

How do I know if Navient serviced my loans? 

Log in to your account at studentaid.gov to view your current and historical loan servicers. If Navient or Sallie Mae appears in your history, you may be eligible.

Can I still get a payment if my loans are paid off? 

Possibly yes. Eligibility is based on whether harm occurred during the servicing period, not whether you still have an active balance.

What if my loans were transferred to Aidvantage? 

Aidvantage (Maximus) took over Navient’s federal loan accounts in 2021. If Navient serviced your loans before that transfer, you may still qualify for this CFPB settlement.

Does this settlement cover private student loans? 

No. This settlement covers federal loan servicing violations only. Private loan cancellation was addressed in the separate 2022 $1.85 billion state attorneys general settlement.

What if I moved and my address is outdated? 

Contact Rust Consulting at 1-800-711-8418 or by email at [email protected] to update your address.

Someone called offering to help me get my Navient payment for a fee — is that legitimate? 

No. This is a scam. The CFPB never charges borrowers to receive settlement payments. Do not pay anyone or provide banking information to receive your check.

When will I receive my check? 

Payments began February 13, 2026, and are being distributed on a rolling basis. There is no set end date disclosed as of this writing.

What if I think I was harmed but don’t receive a check? 

You can contact Rust Consulting to inquire. You may also file a complaint with the CFPB at consumerfinance.gov/complaint if you believe you were harmed by Navient’s practices.

Is the $100 million divided equally among all eligible borrowers? 

The CFPB has not disclosed whether payment amounts are equal or based on degree of harm. Individual payment amounts are not yet publicly confirmed.

Last Updated: February 17, 2026

Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Settlement terms, eligibility, and payment amounts are subject to court approval and may change. For official information, always refer to the settlement administrator or the official settlement website.

About the Author

Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
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