The Claim Filing Deadline has passed. 

The Settlement was approved by the Court on Thursday, January 11, 2024 after a Final Approval Hearing on December 8, 2023.  Settlement payments were mailed to eligible Class Members on July 18, 2024.

Loans that were eligible for discharge under this Settlement have been discharged by Navient Solutions.

What is this Settlement about?

The Lawsuit deals with “Private Student Loans,” which for this purpose are defined as student loans that were not made, insured, or guaranteed by a governmental unit or non-profit institution, were not made under any program funded in whole or in part by any governmental entity or non-profit institution, and were not for attendance at schools that were accredited under Title IV of the Higher Education Act of 1965.

The Lawsuit alleges that these Private Student Loans are “dischargeable” in bankruptcy. The Lawsuit also alleges that, by collecting or attempting to collect on Private Student Loans from borrowers or co-borrowers who obtained discharge orders in their bankruptcy cases, the Defendants violated bankruptcy court orders.

Who is included?

The people covered by the proposed Settlement are referred to as the “Settlement Class.” With some limited exceptions, the Settlement Class includes all individuals who meet each of the following criteria: (1) they filed for bankruptcy protection in any United States Bankruptcy Court located outside of the states of Texas, Louisiana, and Mississippi on or after October 17, 2005; (2) before their bankruptcy filing, they became obligated to repay one or more “Covered Student Loans,” either as a borrower or as a co-borrower; (3) they obtained in their bankruptcy case an order of discharge issued by the bankruptcy court; and (4) they have never reaffirmed their “Covered Student Loan(s).”

What does the Settlement provide?

The proposed Settlement will provide three potential benefits to you: (1) Navient’s (Sallie Mae's) agreement to forego collection of any balances currently shown as outstanding on your Covered Student Loan or Loans listed on Exhibit 1 to the Notice; (2) the repayment to you as damages of a portion of any amounts you have paid to Navient on your Covered Student Loan or Loans listed on Exhibit 1 since the date of your bankruptcy discharge if you submitted a claim; and (3) the provision of either deleted or updated trade line information to credit-reporting agencies about your Covered Student Loan or Loans listed on Exhibit 1.

PLEASE NOTE: The proposed Settlement will NOT terminate, eliminate, or reduce your obligation or the obligation of any co-borrower to make payment to Navient on any student loans owned or serviced by Navient that are not listed on Exhibit 1. Navient will retain all of its rights and remedies, including the right to collect, on any student loans that are not listed on Exhibit 1.

YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT