Navient Borrower Compensation Payments Begin In 2026

Borrowers who were a part of a years-long legal battle over student loan servicing practices are now seeing tangible results: compensation checks arriving in their mailboxes.

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, one of the nation’s largest former federal student loan servicers. The case accused the company of steering borrowers into repeated forbearances (temporary pauses on payments) even when they qualified for more affordable income-driven repayment plans.

For affected borrowers, some of whom report receiving checks in the thousands of dollars, the payments represent long-awaited financial relief. 

What The Lawsuit And Settlement Were About

The CFPB sued Navient, alleging that the companies engaged in unfair and deceptive practices. Central to the case was the claim that Navient improperly directed struggling borrowers into forbearance rather than enrolling them in income-driven repayment (IDR) plans.

Forbearance can provide short-term relief. But interest continues to accrue, and unpaid interest can capitalize — meaning it gets added to the principal balance. Over time, this can significantly increase the total cost of repayment.

Income-driven repayment plans, by contrast, cap monthly payments at a percentage of discretionary income and can offer loan forgiveness after a set number of years. For borrowers with low or moderate earnings, IDR plans can substantially reduce monthly payments and long-term costs.

The CFPB alleged that Navient’s steering practices caused some borrowers to pay more in interest than necessary. 

In 2024, Navient agreed to a settlement that included:

• A $100 million compensation fund for harmed borrowers
• A $20 penalty payment
• A ban from servicing federal student loans

Navient said at the time that it disagreed with the allegations but accepted the settlement to resolve the matter.

What Borrowers Can Except To Receive

The compensation checks are separate from borrowers’ existing student loan accounts. According to the CFPB, 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.

For many borrowers, the underlying federal loans were transferred to new servicers after Navient exited the federal servicing business. The settlement does not reopen or automatically adjust past repayment histories. Instead, it provides cash restitution for financial harm linked to alleged servicing conduct.

The size of payments appears to vary. Some borrowers have reported on Reddit receiving checks of more than $2,000. 

What Borrowers Should Do Now

It's important to note that student loan scammers prey on news like this. Make sure that you know your own student loan situation.

If you receive a compensation check:

1. Verify its authenticity. Payments are being administered by Rust Consulting on behalf of the CFPB.
2. Deposit the check promptly.
3. Continue making required student loan payments. The settlement does not change loan obligations.

Borrowers who believe they were affected but have not received a payment may contact the administrator listed on the CFPB’s website for case-specific information.

The arrival of these checks closes one chapter of a long-running dispute over student loan servicing practices. For many recipients, it is not a full remedy for years of higher balances or financial stress. But it is an acknowledgment that servicing decisions can carry real costs and that federal oversight, even when delayed, can lead to restitution for those harmed.

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