Navient Settlement 2026, $100M Payments, Who Qualifies, What to Expect

The CFPB ordered Navient to pay $120 million — $100 million in direct payments to borrowers and a $20 million civil penalty. Payments began on February 13, 2026. No claim form is required — checks are being mailed automatically by the settlement administrator, Rust Consulting. Navient is also permanently banned from servicing federal student loans.

No Claim Form Needed — But Check Your Address

Eligible consumers did not need to submit a claim form to receive a Navient settlement payment. The settlement administrator will mail paper checks to the address on file. If you have moved since Navient serviced your loans, contact Rust Consulting immediately to update your address or your check may go to the wrong location.

Key Dates at a Glance

Settlement Status: Payments Are Active Right Now

According to the CFPB’s website, a third-party administrator began issuing payments on or about February 13, 2026, from a $100 million fund tied to a 2024 enforcement settlement with Navient. The rollout is gradual — not every eligible borrower receives their check on the same day.

These payouts had been stalled for over a year after the Trump administration essentially froze operations at the consumer protection agency, leading advocacy groups to worry that hundreds of millions of dollars in penalty payments might never reach affected consumers. Those payments are now moving.

There are no active class actions currently accepting new participants. If you qualify, your check is already being processed. There is nothing to sign up for.

Case Details

What the CFPB Alleged

The Consumer Financial Protection Bureau 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 is a repeat offender with a long history of regulatory violations. In 2022, 39 state attorneys general announced a $1.85 billion settlement with Navient for originating predatory student loans in addition to its forbearance steering practices. The current $120 million CFPB payment is separate from that earlier settlement.

Navient, which has said it disagrees with the allegations, agreed to stop servicing federal student loans and to pay $120 million to settle the case.

Settlement Fund Breakdown

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. This means the full $100 million is directed toward borrower compensation without the typical 30–33% attorney fee deduction seen in private class actions.

Who Is Eligible

The CFPB identified recipients using Navient’s servicing records. Restitution primarily went to borrowers who were steered into repeated long-term forbearances instead of income-driven repayment plans, or who experienced inaccurate credit reporting tied to loans previously discharged in bankruptcy through Pioneer Credit Recovery.

You are more likely to receive a check if you:

• Had federal student loans serviced by Navient (or its predecessor Sallie Mae) between approximately 2009 and 2017
• Were placed in repeated or extended forbearances rather than income-driven repayment plans
• Had loans serviced by Pioneer Credit Recovery and experienced credit reporting errors
• Had your federal loans transferred to Aidvantage (Maximus) in 2021 — Navient still serviced them during the covered period

This settlement does NOT cover:

• Private student loans (those were addressed in the 2022 state AG settlement)
• Borrowers whose loans were never serviced by Navient or Pioneer Credit Recovery
• New borrowers who did not experience the specific violations described above

Payment Examples

Important disclosure: Payment amounts vary based on borrower history. The CFPB has not published a fixed payment schedule, and reported amounts have differed across recipients. The following examples are based on reported community data and are illustrative only.

High Scenario — Extended Forbearance, Long Loan History

• Profile: Borrower with federal loans serviced by Navient 2009–2017, placed in forbearance five or more times, never offered an income-driven repayment option
• Reported range for comparable profiles: $500–$2,000
• Basis: Payments range from $100 to $2,000, according to Reddit posts from borrowers who have already received checks.
• Estimated payment: ~$1,000–$2,000

Mid Scenario — Moderate Forbearance History

• Profile: Borrower with federal loans serviced by Navient 2012–2015, placed in forbearance two or three times
• Reported range for comparable profiles: $200–$600
• Estimated payment: ~$300–$500

Low Scenario — Limited or Peripheral Harm

• Profile: Borrower affected by credit reporting errors from Pioneer Credit Recovery, shorter servicing period
• Reported range for comparable profiles: $100–$250
• Estimated payment: ~$100–$200

These are real ranges based on borrower-reported figures. Your actual check amount is determined entirely by Rust Consulting’s calculation using your individual loan records.

What to Do Right Now

If you haven’t received a check yet: Wait 4–6 weeks from February 13, 2026. Distribution is rolling.

If you’ve moved: Contact Rust Consulting at 1-800-711-8418 or email [email protected] to update your mailing address immediately.

If you receive a check: If you receive a check from Rust Consulting related to Navient, it’s real — deposit it.

Your loans are not reduced: The compensation checks are separate from borrowers’ existing student loan accounts. Receiving a payment does not reduce or change any outstanding student loan balance. Borrowers should continue making payments on their student loans and working with their current loan servicer.

Watch for scams: Legitimate settlement administrators will never ask you to pay a fee to receive your money, provide your bank login credentials, or wire money to verify your account. If someone contacts you claiming to be from the Navient settlement and asks for payment, it’s a scam.

Frequently Asked Questions

Do I need to file a claim to receive a Navient settlement payment? No. Payments are fully automatic. Rust Consulting is mailing checks based on Navient’s own servicing records. There is no claim form, no website to register on, and no deadline to meet.

How much will I get from the Navient settlement? Payments range from $100 to $2,000, according to posts from borrowers who have already received checks. Your specific amount depends on the severity and duration of the servicing violations in your individual loan history.

When will I get my check? Payments began on February 13, 2026, but the rollout is gradual. Rust Consulting is processing and mailing checks to hundreds of thousands of borrowers, and not everyone receives theirs simultaneously. Allow 4–6 weeks from February 13.

Is this the same as the 2022 Navient settlement? No. The 2022 settlement was a $1.85 billion multistate attorney general action that canceled $1.7 billion in private student loan debt and paid roughly $260 each to about 350,000 borrowers. The current payments are from a separate $120 million CFPB enforcement action focused on federal loan servicing failures. You could be eligible for both.

My loans are now with Aidvantage. Am I still eligible? If Navient serviced your loans before the 2021 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.

Can I join this settlement now? There are no active class actions currently accepting new participants. Eligibility is determined entirely from Navient’s servicing records. There is no enrollment process.

Is my payment taxable? Possibly. Settlement payments related to interest overcharges or financial harm may have tax implications. Consult a tax professional about whether your payment must be reported as income.

What did Navient get in return? In addition to the financial penalty, Navient is permanently banned from servicing federal Direct Loans and is forbidden from directly servicing or acquiring most loans under the Federal Family Education Loan Program.

Mandatory 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 at 1-800-711-8418, email [email protected], or write to CFPB v Navient, P.O. Box 2561, Faribault, MN 55021-9561. The CFPB’s official page is consumerfinance.gov.

Payment examples in this article are based on borrower-reported figures from community sources and are illustrative only. Actual amounts are determined solely by Rust Consulting using individual loan servicing records.

AllAboutLawyer.com is not affiliated with Navient Corporation, Rust Consulting, or the Consumer Financial Protection Bureau.

Last Updated: February 21, 2026

Sources: CFPB official press release (September 2024); CFPB redress tracking page (February 2026); Reuters (February 17, 2026); USA Today (February 18, 2026); ClaimDepot.com (February 19, 2026); getoutofdebt.org (February 20, 2026); tateesq.com (February 21, 2026); Yahoo Finance/Cybele Weisser (February 19, 2026).

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.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
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