Student-loan borrowers are now getting checks in the mail through a $100 million settlement with a major lender

• Student-loan borrowers are now receiving checks from a $100 million settlement by Navient.
• A government watchdog accused Navient of misleading borrowers on their repayment options.
• The settlement comes as the Trump administration has reduced student-loan oversight.

Student-loan borrowers, check the mail: there might be some money waiting for you.

The Consumer Financial Protection Bureau — a federal watchdog — announced that on February 13, checks began going out in the mail to student-loan borrowers who qualified for a portion of the settlement the agency reached with major lender Navient in 2024.

The settlement resolved claims from a 2017 lawsuit that accused the servicer of misleading borrowers about their repayment plan options, leaving them "cheated" out of lower monthly payments. The settlement permanently banned Navient from servicing federal student loans and required it to return $100 million to borrowers.

The payments are ongoing, and the CFPB has contracted with Rust Consulting — a firm that manages settlements — to administer them. The CFPB said in its latest announcement that the payments do not reduce any student loans that borrowers currently have.

"I think there's been millions of Americans who could have avoided the consequences of default if they had been treated properly by their servicer," Former CFPB Director Rohit Chopra told Business Insider in 2024 after the settlement was announced.

In addition to misleading borrowers about their payment plans, the CFPB accused Navient in its lawsuit of making errors in processing borrowers' payments, failing to deliver relief to defaulted borrowers, and misrepresenting cosigner requirements for taking out loans.

Navient did not deny any wrongdoing and said in a statement at the time that "while we do not agree with the CFPB's allegations, this resolution is consistent with our go-forward activities and is an important positive milestone in our transformation of the company."

The settlement was reached under former President Joe Biden, and it's unlikely that the Trump administration will pursue similar oversight. President Donald Trump slashed CFPB staff as part of his broader effort to reduce the federal workforce, and an April 2025 internal memo from the CFPB's chief legal officer called on the CFPB to "deprioritize" oversight over student loans.

With Trump's looming changes to student-loan repayment, oversight over the industry could be even more critical, some lawmakers and policy experts have said. The Department of Education's plan to place lower caps on borrowing could push some borrowers into the private lending market, which lacks federal protection and could have higher interest rates.

"Student debt places a tremendous burden on borrowers, their families, their communities, and the U.S. economy, driving employment, spending, and housing decisions that have long-lasting negative impacts on borrowers' financial health," a group of Democratic lawmakers wrote in a letter last year. "Placing a greater share of student loans into the hands of private lenders threatens to make these problems much worse."