Navient Student Loan Forgiveness: How it Works [October 2024]

Alert: Navient borrowers, your loans are moving. Check our comprehensive guide on the Navient to MOHELA transfer for details.

• Navient has introduced a private loan forgiveness program for borrowers if their school engaged in misconduct.

• In September 2024, Republican-led states sued to block President Biden’s student loan forgiveness plan, which could delay or change the program.

• Even during the transfer from Navient to MOHELA, you can apply for student loan forgiveness programs like PSLF or IDR.

Over the past few years, Navient has faced major legal issues over its handling of federal student loans. The company has been involved in lawsuits and settled cases due to its treatment of borrowers.

Most recently, in September 2024, the Consumer Financial Protection Bureau (CFPB)—as part of the Biden administration’s efforts to reform the student loan system—permanently banned Navient from managing federal student loans. This was due to its misconduct in handling borrowers’ loans and repayment options.

Navient must now pay $120 million, with $100 million going to borrowers who were harmed. This follows another settlement in 2022, where Navient and its predecessor Sallie Mae were accused of giving out predatory education loans to students attending low-value schools, knowing they wouldn’t be able to repay them.

Related: Navient Settlement 2024: Who Qualifies for $120 Million Relief?

These actions are part of the Biden administration’s efforts to hold student loan companies and lenders accountable, with approximately $168.5 billion in debt cancellation provided so far to more than 4.7 million federal student loan borrowers.

If you’re a Navient borrower, these changes may feel overwhelming, especially if you’ve been making consistent monthly payments. But there’s good news—there are still ways to get your Navient loans forgiven or even qualify for loan cancellation.

Below, we’ll break down the different forgiveness options, how to qualify, and what steps you need to take.

Navient offers private student loan forgiveness for borrowers misled by their schools. Eligibility is based on school misconduct, not employment or income. Borrowers must submit an application explaining how their school deceived them and provide supporting documentation.

Related: Navient Now Offers Private Loan Forgiveness: Are You Eligible?

Navient also offers federal student loan forgiveness for borrowers who work in public service, make payments for 20 to 25 years under an income-driven repayment plan, become totally and permanently disabled, or teach in low-income schools.

Here’s how those programs work:

1. Public Service Loan Forgiveness

If you work for a qualifying public service employer, the PSLF program could forgive the remaining balance on your Direct Loans after 120 qualifying payments.

• Who Qualifies: Borrowers with Direct Loans who work full-time for a government or nonprofit organization.

• Why This Matters: PSLF can erase your remaining balance after making 120 qualifying payments, potentially saving you tens of thousands of dollars.

• How to Qualify: You must consolidate your FFEL loans into Direct Loans to be eligible.

2. Income-Driven Repayment Forgiveness

Navient will forgive your remaining loan balance forgiven after 20 or 25 years of making on-time monthly payments, depending on the plan. If you consolidate, you can get credit for time spent in deferment and forbearance.

Related: How the IDR Waiver Works

• Who Qualifies: You can qualify if you have federal loans, including Direct Loans or consolidated FFEL loans.

• Why This Matters: If you’re struggling to pay off your loan balance, IDR offers a long-term forgiveness option that’s based on your income.

• How to Qualify: Consolidate your loans into a Direct Loan on StudentAid.gov to get the most forgiveness credit. Enroll the new loan in an IDR plan such as SAVE Plan, PAYE Repayment Plan, IBR, or ICR Plan.

3. Borrower Defense to Repayment

Attending a school that engaged in misconduct may make you eligible for full loan forgiveness.

• Who Qualifies: You need to demonstrate that your school misled you or violated state laws.

• Why This Matters: If your school engaged in illegal practices, you shouldn’t be held accountable for loans tied to their misconduct.

• How to Qualify: Submit a Borrower Defense claim to the Department of Education. Related: Guide on Borrower Defense to Repayment

4. Total and Permanent Disability Discharge

Complete loan forgiveness is available for those with total and permanent disability under the TPD discharge program.

• Who Qualifies: Borrowers with a documented total and permanent disability.

• How to Qualify: Submit an application along with proof of your disability to be considered for discharge. This can be a letter from the Social Security Disability Insurance (SSDI) or Veterans Affairs (VA), or Physician’s Certification.

Related: What Disabilities Qualify for Student Loan Forgiveness

1. Check Your Loan Type

You need to review your loan type to ensure you apply for the right forgiveness program, like PSLF or IDR for federal loans, or private student loan forgiveness if your school engaged in misconduct. This helps you avoid mistakes and increases your chances of qualifying for relief.

2. Consolidate Your Loans (If Necessary)

Federally backed FFELP loans won’t qualify for most forgiveness programs until you consolidate them into a Direct Consolidation Loan. Here’s how to do it:

• Visit the studentaid.gov to start the consolidation process.

• Make sure you select an income-driven repayment plan if you want to pursue IDR forgiveness.

• Once your loans are consolidated, you can apply for PSLF or IDR forgiveness.

The Department of Education does not charge any fees for federal student loan consolidation. You can apply at no cost.

3. Apply for Public Service Loan Forgiveness

Working for a qualifying employer, such as a government or nonprofit, opens up the opportunity for PSLF. To proceed:

• Submit the PSLF form through the studentaid.gov

• Make sure to certify your employment annually and keep track of your qualifying payments.

4. Enroll in an Income-Driven Repayment Plan

You may pursue IDR forgiveness by taking the following steps:

• Use the Loan Simulator on the Federal Student Aid website to determine the best IDR plan for your situation.

• Submit your application for an IDR plan, and make sure to provide any necessary income documentation.

• After enrolling, continue making payments for 20 or 25 years, depending on the plan, until the remaining balance is forgiven.

5. Be Aware of Upcoming Forgiveness Programs

In September 2024, a group of seven Republican-led states filed a lawsuit to block President Biden’s latest student loan forgiveness plan, which was set to roll out in the fall.

The lawsuit argues that the Department of Education acted prematurely by directing loan servicers to begin canceling loans before the final rule was published.

The Biden administration is continuing its efforts, but the outcome of this legal challenge could delay or alter the program.

Starting October 21, 2024, MOHELA will manage your loans instead of Navient. Make sure you follow these steps to ensure your student loan forgiveness is unaffected by the transition.

1. Know What’s Staying the Same

Even though your loans are now managed by MOHELA, details like:

• Your loan account number

• Payment history, and

• Repayment plan – remains unchanged.

MOHELA will simply be your new point of contact for managing your loans.

2. Create a MOHELA Account

Once the transfer happens, it’s important to set up an account with MOHELA to manage your loans online.

• Visit MOHELA’s website.

• Click “Create Account.”

• Use your Social Security number and email to get started.

After logging in, check your loan details to ensure everything from Navient has transferred properly.

3. Check Your Payment History

Make sure all payments you made with Navient, especially those that count toward forgiveness (such as PSLF or IDR forgiveness), are reflected correctly in your MOHELA account.

If anything is missing, contact MOHELA: 1-888-866-4352 (Toll Free) or 636-532-0600 (International).

4. Verify Your Forgiveness Progress

If you’re pursuing loan forgiveness, whether through PSLF or IDR, double-check that your qualifying payments and loan details are up-to-date.

MOHELA should have all your progress recorded from Navient, but it’s a good idea to confirm.

5. Document Everything

As your loans transition from Navient to MOHELA, it’s a good idea to save copies of your payment history and loan forgiveness progress. This way, you’ll have documentation in case any issues arise.

You can get your Navient federal and private student loans forgiven. For federal loans, you’ll need to consolidate those FFEL and Perkins Loans into a Direct Consolidation Loan. Doing this will make you eligible for many of the forgiveness opportunities the Biden Administration has launched since taking office.

For private loans, you’ll need to request an application from Navient.

If you’re finding the process difficult or need assistance, we’re here to help. Schedule a 1-on-1 consultation with our student loan lawyers, and we’ll walk you through each step to make sure you don’t miss out on forgiveness opportunities.