Navient Private Loan Forgiveness: How It Works
Updated on November 13, 2025
Navient does offer private loan forgiveness—but only through its School Misconduct Discharge program. This option applies to private Navient or Sallie Mae loans used to attend for-profit schools accused of fraud. It’s separate from Navient’s federal forgiveness options and past lawsuits. In 2025, the program is under fire in an Illinois class action that claims Navient unfairly denied nearly every application.
Navient’s School Misconduct Discharge program allows certain private-loan borrowers to request cancellation if their school misled them or engaged in deceptive practices. It targets loans used at institutions like ITT Tech, The Art Institutes, and other for-profit schools with documented misconduct.
If approved, Navient cancels the remaining balance and, in rare cases, refunds some payments. The program isn’t automatic—you have to apply directly, provide documentation, and make a strong case that the school’s misconduct caused financial harm.
This process is separate from:
The 2022 state attorneys general settlement, which erased some defaulted subprime loans automatically.
The 2023 bankruptcy settlement, which canceled loans that should have been discharged in court.
The 2024 CFPB order, which permanently banned Navient from servicing federal loans.
Those past cases are closed. The School Misconduct Discharge is Navient’s only active relief path for private loans.
What to Do if You Don’t Qualify
If you’re denied—or your loan doesn’t meet the program’s criteria—you still have options.
1. Negotiate a Settlement
Navient settles defaulted private loans for less than the full balance, often between 30 and 60 percent of what’s owed. You usually have to be in default first.
Related: How to Settle Navient Student Loans After Default
2. Explore Bankruptcy
Private loans tied to for-profit schools may qualify for discharge in bankruptcy, especially if they exceeded the school’s cost of attendance or weren’t used for qualified education expenses. Courts have already forced Navient to erase similar loans in earlier settlements.
Related: Can You File Bankruptcy on Student Loans?
3. Rebuild Leverage
If your loans are still active, you can strengthen your position by:
Requesting a written explanation for your denial
Filing a complaint with the Consumer Financial Protection Bureau (CFPB)
Contacting advocacy groups like the Project on Predatory Student Lending (PPSL)
These steps create a paper trail that may help if new reviews or settlements emerge.
FAQs
Who qualifies for Navient private loan forgiveness?
Borrowers with private Navient or Sallie Mae loans used for for-profit or unaccredited schools accused of misleading students may qualify. You must still owe on the loan, and you’ll need proof the school’s claims—about jobs, salaries, or accreditation—led you to borrow.
How do I apply for Navient’s School Misconduct Discharge?
Request the application from Navient’s Office of the Consumer Advocate by emailing advocate@navient.com or calling 855-545-4199 ext. 998214. You’ll describe how your school misled you and include supporting evidence such as ads, recruiter emails, or official findings of fraud.
How long does the application process take?
Processing times vary significantly. Since Navient hasn't publicized program details, there's no standard timeline. Borrowers in online communities report wait times ranging from several weeks to several months for decisions.
Why was my Navient forgiveness application denied?
Navient often denies claims for lack of documentation or because the loan was refinanced or paid off. Many borrowers say denials used vague language. These rejections are now part of a 2025 Illinois lawsuit accusing Navient of mishandling the review process.
Can I reapply if Navient denied my private loan forgiveness request?
Yes, but only through its School Misconduct Discharge program. Navient reviews applications individually, and approvals remain rare while the class-action case is pending. No other private-loan forgiveness programs are open right now.
What happens if I don’t qualify for Navient forgiveness?
You can still resolve the debt through settlement or, in some cases, bankruptcy. Defaulted loans often settle for 30–60 percent of the balance. Borrowers with older or fraudulent-school loans may also explore discharge in bankruptcy court.
How does the Illinois class-action lawsuit against Navient affect borrowers?
The 2025 Illinois lawsuit claims Navient ran a sham forgiveness program that denied nearly every applicant. If borrowers win, Navient could be required to reopen or automatically discharge certain private loans tied to for-profit school misconduct.
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