Some student loan borrowers are eligible for $2K payments — here’s everything you need to know

Some student loan borrowers are eligible to get payments of up to $2,000 from a $120 million settlement the Consumer Financial Protection Bureau reached with a major loan provider.

In 2024, the CFPB finalized a settlement with Navient after accusing the Virginia-based loan servicer of pushing student loan borrowers to enroll in costly payment plans – steering them away from more affordable options.

Navient – which previously declined the claims – agreed to pay $120 million, including a $20 million penalty and $100 million in relief for harmed borrowers.

Navient did not immediately respond to The Post’s request for comment.

Here’s everything you need to know about the payments.

Who is eligible?

In 2017, when the lawsuit was initially filed, Navient managed more than 6 million student loan accounts under its contract with the Department of Education, according to the CFPB.

Student loan borrowers who were harmed by Navient’s unlawful guidance are eligible for payments, the government agency said in a press release.

Consumers do not need to submit anything to receive their payments.

The bureau warned that scammers might try to impersonate government employees to try to steal money or private information from borrowers, but that the CFPB will never require consumers to pay money or send additional information to receive settlement payments.

When will you receive payments?

Settlement payments to victims started Feb. 13 and are ongoing, according to the CFPB.

Consumers have reported receiving checks ranging from $100 to as much as $2,000 in posts on social media sites such as Reddit.

What to do if you have not received a payment

Consumers who have not yet received a payment but believe they may be eligible should contact Rust Consulting, which the CFPB has contracted to administer payments related to the case.

The consulting service can be reached via email at [email protected], or consumers can call the toll-free number 1-800-711-8418.

CFPB has been largely shut down since last February, with a case on the fate of its employees playing out in court.