Student loan borrowers getting up to $2,000 from $120 million settlement: What to know

Thousands of student loan borrowers are receiving checks related to a massive settlement with lending giant Navient.
The Consumer Financial Protection Bureau and the loan servicer reached a settlement in 2024 over allegations that Navient pushed borrowers to pause payments even if they qualified for cheaper repayment plans, adding to their interest costs, USA Today reported.
Navient also illegally deprived student borrowers from opportunities to enroll in more affordable income-driven repayment plans, forcing them to pay more than they should have, feds said.
Navient disagreed with the allegations but agreed to stop servicing student loans and pay $20 million in fines and $100 million to borrowers.
Who is receiving a check?
Checks for those who qualified for payments began arriving on Feb. 13. The payments, administered by Rust Consulting, are ongoing. The payments do not change or reduce any student loans that are owed, CFPB said.
Settlement checks will range from about $100 to $2,000. Eligible borrowers have previously been notified by mail and do not have to take any action to receive their checks.