US student borrowers who were steered into costly forbearances from affordable repayment plans by former federal loan servicer Navient could soon receive a check in the mail more than a year after the Consumer Financial Protection Bureau (CFPB) reached a $120 million settlement with the lender.
Although the CFPB has yet to share the number of borrowers who will receive checks under the settlement, higher education expert Mark Kantrowitz analysed historical data to estimate that at least 100,000 people could get one, with each payment likely to be several hundred dollars.
According to the CFPB, payments began on 13th February, and the payments, administered by Rust Consulting, are ongoing. Some people have received checks of up to $2,000, and payments ranged from $100 to $2,000.
The CFPB alleged that Navient steered borrowers towards expensive forbearances, which compelled many to pay high interest charges.
https://www.ibtimes.co.uk/navient-settlement-us-student-borrowers-checks-1782027