As part of the deal it made to cancel private loans, Navient agreed to send restitution payments to borrowers it steered into costly long-term forbearances rather than helping them find a more affordable way to pay, such as enrolling in an income-driven repayment plan. Read more about forbearance steering. Most federal student loan borrowers who qualify for the $260 payment have received it.
While it was sending out those checks, Navient finished moving millions of borrowers whose loans were owned by the Education Department to a new student loan servicer, Aidvantage. The loans that changed hands are automatically eligible for many changes that the Biden administration has made to the department’s forgiveness program.
Related: Who Took Over Navient Loans?
The same isn’t true of the federal loans that remain with Navient.
If you still have Navient FFEL Loans, you can benefit from the Education Department’s latest debt cancellation waivers — the PSLF and IDR Waivers. But you must consolidate your loans into a Direct Consolidation Loan to be eligible.
Learn More: Aidvantage Loan Forgiveness
Public Service Loan Forgiveness Program
Eligibility requirements: Work full-time for a government or nonprofit organization and make 120 IDR Plan student loan payments, and the US Department of Education will write off your remaining balance. Read more about PSLF qualifying payments.
How to apply: Follow these two steps to apply. To begin, combine your FFEL Loans into a Direct Consolidation Loan. You can do that on the Federal Student Aid website, studentaid.gov. Next, submit a PSLF application to MOHELA, the student loan servicer that manages the program. If you apply before October 31, 2022, you’ll be eligible for the PSLF Waiver and will receive retroactive credit for payments made on the loans before consolidation.
Income-Driven Loan Repayment Forgiveness
Eligibility requirements: Have federal student loans and make payments for 20 to 25 years under an IDR plan.
How to apply: Enroll in one of the income-driven repayment plans to receive a monthly payment amount that is affordable for the entire year. Continue to participate in one of those plans for the next two decades, recertifying your income and family size annually. If you borrowed federal loans for your undergraduate studies, only, the Education Department will forgive your loans after 20 years. If you borrowed federal loans for graduate school, you’ll have 25 years to repay them.
If you consolidate your FFEL Loans before the year ends, you’ll be eligible for the IDR Account Adjustment. This waiver will give you IDR forgiveness credit for:
Loan payments made before consolidation.
Periods in which your account was in long-term forbearance.
Months spent on deferment before 2013 — but not in-school deferment periods.