Navient has initiated a debt relief program for borrowers whose private student loans were serviced by the company and who were defrauded by their educational institutions. Although not yet formally announced, applications have been distributed to select borrowers, with advocacy groups like the Project on Predatory Student Lending (PPSL) promoting the program to ensure broad awareness. U.S. Senator Elizabeth Warren criticized the complexity of the process, calling it "wildly confusing." The program is modeled on the federal government’s Defense to Repayment application, targeting borrowers whose schools engaged in misconduct, such as making misleading statements or using aggressive recruitment tactics.
Eligible borrowers can obtain the School Misconduct Discharge Application by contacting Navient. The application requires a detailed account of the school's misconduct and supporting documentation. Despite this initiative, private student loans are generally excluded from the Biden Administration’s broader student loan forgiveness efforts. Navient, once the largest student loan servicer post-2014 acquisition of Sallie Mae’s portfolio, ceased servicing federal student loans in 2021 and has been transferring its private loan portfolio to MOHELA. The PPSL continues to advocate for transparency and accessibility in the relief process.
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