Some borrowers with private student loans managed by Navient may soon receive significant relief. The company has quietly launched a debt forgiveness program for borrowers who were misled by their educational institutions. Though Navient hasn’t made a formal announcement, it has started distributing applications to a select group of borrowers.
According to the Project on Predatory Student Lending (PPSL), Navient has begun contacting certain borrowers to inform them about this opportunity. PPSL has been promoting this program and has provided detailed instructions on their website to guide borrowers through the process.
The Navient loan forgiveness program
Eileen Connor, President and Executive Director of PPSL, emphasized the importance of spreading the word: “We want to ensure that affected borrowers, not just those handpicked by Navient, know there’s a way to get relief.” U.S. Senator Elizabeth Warren has publicly criticized Navient’s process for forgiving private student loans, calling it “extremely confusing.”
In April 2024, Warren and eight other senators sent a letter to Navient’s CEO, urging the cancellation of “predatory” private student loans for those who attended for-profit schools involved in misconduct.
Navient responded by informing elected officials that their application for school misconduct cancellation is modeled after the federal government’s Borrower Defense to Repayment application, using nearly identical questions.
Navient has made information about loan forgiveness available on its website, indicating that borrowers can contact them anytime for assistance. A company representative noted in an email that borrowers can get help by contacting Navient directly.
Who can benefit from the forgiveness
Navient’s private student loan forgiveness program is not available to all private loan borrowers. According to a sample application published by PPSL, you might be eligible if your loans were managed by Navient and your educational institution committed any of the following offenses:
● The school or its representatives made false or misleading statements to persuade you to attend or remain enrolled.
● The school concealed, suppressed, or omitted information that could have influenced your decision to attend or stay enrolled.
● The school used aggressive and deceptive recruitment tactics, such as pressuring you to enroll or take out loans, or discouraging you from discussing your decision with family and friends.
● The school failed to meet its contractual obligations.
How to apply for loan cancellation
If you believe you might be eligible for the cancellation of your private student loans, PPSL recommends following these steps:
- Obtain an application. You can contact Navient by phone at (888) 545-4199 or by email at advocate@navient.com to receive a School Misconduct Discharge Application. If Navient refuses to send you an application, PPSL urges you to file a complaint with the Consumer Financial Protection Bureau.
- Fill out the form. You will need to provide a detailed description of how your school misled you. Navient requires supporting documentation, such as an approval notice from the Department of Education for your federal Borrower Defense to Repayment application and a copy of a public announcement of misconduct related to your school.
- Submit your application. Navient will accept your completed application by mail. Send it to: Navient, P.O. Box 4200, Wilkes-Barre, PA 18773-4200, or by email.
The Biden Administration has approved $167 billion in student loan forgiveness for 4.75 million Americans, according to the Department of Education. However, borrowers with private student loans are not eligible for that relief. Apart from what Navient is doing, PPSL is not aware of any other similar processes to cancel private student loans.
Navient has developed this relief program based on the federal government’s Borrower Defense to Repayment application, suggesting it is attempting to offer a similar path for private loan borrowers who were victims of school misconduct.
The role of PPSL
The Project on Predatory Student Lending has been a key player in spreading information about this forgiveness program. By providing resources and detailed guides, PPSL ensures borrowers have the necessary information to take advantage of this opportunity.
Their goal is to prevent only a select group of borrowers from benefiting and to ensure that all those affected by school misconduct know about and access loan forgiveness.
The impact of this forgiveness program could be significant for borrowers who were misled by their educational institutions. Not only would it provide financial relief, but it could also set a precedent for future actions against predatory practices in the private education sector. However, the success of the program will depend on the transparency and accessibility of the process, as well as Navient’s willingness to collaborate with borrowers and resolve their applications fairly.
