


Student loan borrowers from three states who used Navient, a private student loan servicer, have five days to file a claim to receive part of a $28 million class-action settlement.
Navient agreed to settle class-action lawsuits from borrowers after the company illegally collected money from students after it went bankrupt.
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People who are eligible for a portion of the settlement include those who were required to repay Navient student loans, filed for bankruptcy in a U.S. bankruptcy court outside of Texas, Louisiana, or Mississippi after Oct. 17, 2005, and obtained a discharge order.
There is no set award amount for the first settlement because it will depend on the types of damages that students experienced. Navient agreed to let go of certain student loans that were collected, as well as restore damages to the credit reports of borrowers who were affected.
There is a second settlement out of the same case that is worth $16 million. The second settlement is for compensation to students affected by the illegal student loan collection. If a student was a borrower or co-borrower who filed for bankruptcy protection after Oct. 17, 2005, and never reaffirmed their private student loans, then they will be eligible for the $16 million settlement.
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The second settlement will pay 20% to 100% of the damages suffered, including student loan payments made after Navient’s bankruptcy.
The first settlement claim must be filed by Nov. 15, and the second must be filed by Nov. 20.