Payment of the Navient settlement has begun: here’s what you need to know

If you had federal student loans serviced by Navient, the money may already be on its way to you — and you didn’t have to do anything to get it.

The Consumer Financial Protection Bureau $120 million enforcement action against Navient pays out now. The first round of checks went out on February 13, 2026 through Rust Consulting, the court-appointed administrator. A claim form was not required for most borrowers.

This is the result of a lawsuit filed by the CFPB in 2017 (Case No. 3:17-cv-00101-RDM), alleging that Navient systematically harmed millions of student loan borrowers through deceptive practices spanning more than a decade.

What Navient did wrong

The CFPB’s case was not about one mistake. It passed a pattern of failures consequences for millions of borrowers for more than a decade:

• Directed borrowers toward forbearance instead of income-driven repayments — Navient pushed struggling borrowers into forbearance (where interest continues to pile up) instead of enrolling them in income-driven repayment plans that would have lowered their payments and kept them on track to forgiveness
• Misapplied payments — When borrowers sent extra money to pay off high-interest loans first, Navient spread the payments across all loans, giving borrowers more interest
• Borrowers’ credit damaged — Failure to properly handle credit reporting, resulting in inaccurate negative marks on borrowers’ credit reports
• Co-signers misled about release – Told co-signers that they could be released from loans after a certain number of on-time payments, then made the actual process nearly impossible

Who gets money and how

The CFPB’s payment page for Navient confirms that affected borrowers will be contacted directly:

• No claim form required for most borrowers, payments are made automatically based on Navient data
• Checks sent by Rust Consulting, the settlement administrator
• The first payments have been made on February 13, 2026
• To ask? Phone conversation 1-800-711-8418

This is separate from the $1.85 billion AG settlement

If this sounds familiar, you might be thinking of another Navient settlement. There have been two main actions:

You could potentially benefit from both if you face both the private lending practice (AG settlement) and the failed federal loan settlement (CFPB action).

Navient has been permanently excluded from federal loans

Besides the money, the CFPB’s order includes something more important: Navient is permanently banned from servicing federal direct loans.

Navient had already transferred its federal loan servicing to Aidvantage (a subsidiary of Maximus) in 2022, but the ban means there is no return. At its peak, Navient managed the accounts of more than twelve million borrowers with more than $300 billion in federal and private student loans.

What this means if you have student debt

The Navient case reminds us that the companies servicing your student loans don’t always have your best interests in mind. This is what you need to do:

• Check your email — If you qualify for a CFPB payment, it will come automatically. Don’t throw away anything from Rust Consulting
• Know your service provider – Log in StudentAid.gov to see who is currently servicing your federal loans
• Ask about income-related repayment — If you’re struggling, don’t accept tolerance as your only option. Income-driven plans limit payments to a percentage of your discretionary income
• Understand ALL your options — Take the free Find Your Path quiz to see which approach might work best for your specific debt situation

Frequently asked questions

How much will I get from the Navient CFPB settlement?

Individual payment amounts depend on how you have been affected by Navient’s practices. The total pool is $100 million in consumer payments. The CFPB has not disclosed the exact amounts per borrower, as they vary based on the specific harms each borrower experienced. Checks are mailed by Rust Consulting – call 1-800-711-8418 with questions about your specific payment.

Do I have to file a claim to get money from the Navient settlement?

No. A claim form is not required for most borrowers. The settlement administrator (Rust Consulting) uses Navient’s data to identify affected borrowers and automatically send payments. If you believe you have suffered damages but are not receiving payment, please contact Rust Consulting at 1-800-711-8418.

Is this the same as the 2022 Navient settlement?

No. There are two separate Navient settlements. The 2022 settlement was a $1.85 billion attorney general action that forgave $1.7 billion in private student debt and paid about $260 each to about 350,000 borrowers. The current payments come from a separate $120 million CFPB enforcement action targeting failed federal loans. You may qualify for both.

Who is Rust Consulting and why are they sending me a check?

Rust Consulting is the court-appointed settlement administrator handling payments for the CFPB’s Navient enforcement action. They are a legitimate company that manages the payments for many government enforcement actions and class action settlements. If you receive a check from Rust Consulting related to Navient, it’s real: deposit it.

What should I do if someone asks me to pay a fee to get my Navient settlement money?

That’s a scam. Legitimate settlement administrators never charge fees to distribute settlement payments. Do not provide bank details, transfer money or pay ‘processing fees’. The real payments come automatically and no action is required. Report suspected fraud to the FTC ReportFraud.ftc.gov.

(Source: CFPB Newsroom | CFPB Payment Information)

Consumer debt expert and investigative writer. Survivor of Personal Bankruptcy (1990). Award-winning author of the Washington Post. Exposing debt fraud since 1994.