Student loan borrowers who used a private student loan servicer called as Navient from three states can file a claim till Monday to receive a part of a $28 million class-action settlement.
When the company went bankrupt and illegally collected money from students, the Navient agreed to settle class-action lawsuits from the borrowers.
For Navient student loan users, there would be two settlements available which includes, the first one, which is worth $28 million and the second, which is worth $16 million. The eligibility of people to receive the portion of first settlement are those who will have to repay Navient student loans, are filed for bankruptcy in a U.S. bankruptcy court outside of Texas, Louisiana or Mississippi on or after October 17, 2005, who obtained a discharge order and never asked to reaffirmed their “Covered Student Loans”.
The amount for the first settlement have no set award because it will depend upon the types of damages that the students experienced. Navient agreed to let go of certain students loans that were collected, as well as to restore the damages to the credit reports of borrowers who were affected. The settlement claim must be filed by Nov.13.
The second settlement will be going to pay 20% to 100% of the damages suffered, this will include the student loan payments made after Navient’s bankruptcy. This claim must be filed by November 20.