Kentucky Attorney General Daniel Cameron says some Kentucky students who had a student load with Navient will be getting a return on their money after a settlement against the company.

Thousands of Kentucky students will benefit as Attorney General Daniel Cameron announced on Thursday a $1.85 billion settlement between 39 attorneys general and Navient Corporation and its subsidiaries related to their servicing of student loans.

Navient, known as one of the nation’s largest student loan servicers, has agreed to pay $1.85 billion to 38 states and the District of Columbia. Kentucky will receive $1,419,027.64, including $1,241,950 in restitution to 4,659 Kentucky borrowers.

The consent judgement resolves allegations of consumer protection law violations related to Navient’s allegedly deceptive student loan servicing practices. Under the terms of the settlement, Navient will cancel the remaining balance of more than $1.6 billion in private student loan balances for 62,000 borrowers nationwide, including $43,042,898 million in balances for 2,155 Kentuckians.

“This settlement cancels over $43 million of debt and provides more than $1.2 million in restitution to Kentuckians; and requires Navient to alter their business practices to protect future borrowers,” Cameron said. “Our Office of Consumer Protection works diligently to protect Kentucky consumers and this settlement is one part of our efforts.”

Borrowers with cancelled loans resulting from this settlement, will receive a notice from Navient and a refund for payments made after June 30, 2021. Federal loan borrowers who are eligible for a restitution payment should update or create a account, including their current mailing address, as the settlement administrator will send a postcard with additional information later this spring.

Under other provisions of the settlement, Navient is required to:

  • Explain the benefits of income-driven repayment plans and offer to estimate income-driven payment amounts before placing borrowers into optional forbearances.
  • Train specialists who will advise distressed borrowers concerning alternative repayment options and counsel public service workers concerning Public Service Loan Forgiveness (PSLF) and related programs.
  • Cease compensating customer service agents in a manner that incentivizes them to minimize time spent counseling borrowers.
  • Notify borrowers about the U.S. Department of Education’s recently announced PSLF limited waiver opportunity, which temporarily offers millions of qualifying public service workers the chance to have previously non-qualifying repayment periods counted toward loan forgiveness, under certain circumstances.

For additional information about the settlement, visit

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