Navient Private Loan Forgiveness: How it Works [2025]

• Navient private loan forgiveness exists but isn’t advertised. You must request the “school misconduct discharge application” from Navient and be proactive in pursuing relief.

• Strong documentation of personal harm from school misconduct is critical. Your success depends more on proving how you were affected than which school you attended.

• While denials are common and few people have gotten relief, the decision isn’t final. You can resubmit strengthened applications, file CFPB complaints, or explore settlements if initially rejected.

In early 2024, Navient introduced a private loan forgiveness option for borrowers who took on high-interest loans to attend for-profit schools known for misconduct—such as the Art Institutes, ITT Tech, and Westwood College.

Though this initiative isn’t part of Navient’s past lawsuits or any widespread federal student loan forgiveness efforts, it exists to address predatory debt linked to fraudulent schools.

Here’s what sets this program apart:

• It specifically targets private student loans from Navient (or Sallie Mae) tied to institutions facing accusations of fraud.

• It offers a chance for borrowers who haven’t been helped by previous state or federal settlements to potentially discharge their private debt.

Related: Navient Puerto Rico Lawsuit Settlement

Navient’s private loan forgiveness program, officially known as the “school misconduct discharge application,” provides relief for borrowers saddled with high-interest loans from predatory for-profit schools.

Here’s how it works:

• Loan Discharge: Borrowers whose private loans were used to attend schools accused of fraud or misconduct may be eligible to have their remaining loan balances canceled.

• Potential Refunds: In some cases, borrowers who’ve made payments on those loans could receive refunds though the amount varies, and refunds aren’t guaranteed.

This program emerged under pressure from regulators and lawmakers who demanded accountability for Navient’s role in financing fraudulent schools.

Although it’s similar to the federal Borrower Defense to Repayment process, it applies strictly to Navient’s private loans.

Navient’s 2024 private loan forgiveness program didn’t appear out of thin air—years of scrutiny and legal pressure forced the company to address the harm caused by predatory for-profit schools. But this initiative is separate from Navient’s previous legal battles and settlements:

• It’s not part of the CFPB’s 2017 lawsuit: That lawsuit accused Navient of pushing federal student loan borrowers into costly forbearances and deferments rather than affordable repayment plans, misleading them about Public Service Loan Forgiveness, and mishandling cosigner releases.

• It’s separate from the $1.85 billion 2022 state attorneys general settlement: That agreement provided $1.7 billion in private loan cancellation for 66,000 borrowers who attended schools with high dropout rates and poor job placement outcomes. It also led to the one-time account adjustment the Biden administration implemented once it learned Navient and other student loan servicers steered borrowers into forbearance and deferment instead of income-driven repayment plans.

• It’s unrelated to the 2024 CFPB settlement: That settlement permanently banned Navient from federal student loan servicing (including Direct and FFEL Loans) and required $100 million in payments to borrowers plus $20 million in penalties.

• It’s not tied to ongoing lawsuits about federal loan transfers to MOHELA: Borrowers affected by those transfers report issues like missing payment histories and delays in PSLF or IDR processing.

Despite these prior actions, Navient’s new private loan discharge process addresses different loans: specifically, private loans linked to for-profit school misconduct.

Under the “holder in due course” rule—a 1975 Federal Trade Commission regulation—lenders like Navient can be held liable if the schools they financed misled students.

Lawmakers, including Senator Elizabeth Warren, have repeatedly pressed Navient for transparency on this matter. In response, Navient has set aside funds for potential discharges but hasn’t disclosed how many of its $16.6 billion private loan portfolio might ultimately qualify.

You may be eligible for Navient’s private student loan forgiveness program if you have unpaid loans (originally from Navient or Sallie Mae) used to attend a for-profit school known for fraudulent or misleading practices.

Your loans must still be serviced by Navient—refinanced or fully repaid loans usually won’t qualify.

The program focuses more on how the school’s misconduct affected you than on the school’s name.

Common Disqualifiers

• Loans refinanced elsewhere.

• Loans fully paid off.

• Lacking sufficient evidence that the school’s misconduct caused you financial or professional harm.

• Direct-to-consumer loans that were issued solely to you, not the school (sometimes making it harder to prove misconduct was directly tied to tuition).

Not Sure If You Qualify?

• File a CFPB Complaint: You might receive a written response from Navient clarifying why you’re ineligible or what evidence you need.

• Use Advocacy Groups: Organizations like the Project on Predatory Student Lending can help assess your case.

• Join Online Communities: Reddit’s r/BorrowerDefense and similar forums can offer real-world insights and examples of what worked for other borrowers.

Even if your situation doesn’t match every criterion perfectly, persistent documentation and strong evidence can improve your odds of approval.

To apply for Navient’s private loan forgiveness program, request the School Misconduct Application directly from Navient by:

• Emailing: advocate@navient.com

• Calling: 855-545-4199, extension 998214 (Office of Consumer Advocate).

Once you have the application, here’s how to complete it successfully:

First, provide key details like:

• The dates you attended the school.

• Your current student loan balance.

• Specific ways the school defrauded or misled you (e.g., false job placement rates, inflated salaries).

Second, strengthen your case by gathering documents in support. Navient won’t approve your application without evidence.

To get you started, here’s a sample of the loan discharge application from the PPSL.

Tip: Use the Holder Rule to Strengthen Your Case

The FTC’s 1976 Holder Rule (also called the Holder in Due Course Rule) can help you argue that your loan isn’t enforceable if it’s tied to a fraudulent school.

• What It Does: This rule holds lenders like Navient accountable for financing schools that misled students.

• How It Helps: If your school lied about things like job placement rates or salaries, you can cite the Holder Rule as a legal defense against repayment.

Including references to the Holder Rule in your application—especially alongside evidence of fraud—can make your case stronger.

Related: How to Get FFEL Loans Forgiven

Denials from Navient are common, often accompanied by vague explanations like “you do not meet the requirements.” While the process can feel arbitrary, some borrowers have successfully overturned denials by strengthening their applications.

Here’s how to approach a rejection:

First, start by breaking down your denial letter. Look for specific reasons, such as references to “direct-to-consumer” loans or insufficient evidence.

Compare your case with successful applications shared in forums like r/BorrowerDefense to identify gaps in your documentation or personal statement.

Then, to make your case harder to deny, focus on these key steps:

• Add Targeted Evidence: Submit proof tied directly to your school, like job placement ads, inflated salary claims, or recruiter emails. Use tools like Glassdoor or Wayback Machine to strengthen your evidence.

• Strengthen Your Personal Statement: Be specific about how the school’s misconduct harmed you financially or professionally.

• Leverage External Support: Reference lawsuits, Department of Education findings, or advocacy letters like Senator Warren’s to reinforce your case.

If Navient doesn’t have a formal appeal process, reapply with improved documentation, file a complaint with the Consumer Financial Protection Bureau, or involve state authorities. Online communities and advocacy groups can also provide valuable support.

But your best bet is to get any sort of student loan debt cancellation is to stay organized and build a paper trail that strengthens your chances for future success.

If you discover you’re ineligible for Navient’s private loan forgiveness program, or your application is denied, it’s understandable to feel frustrated.

Here are three potential pathways:

1. Negotiate a Settlement

Some borrowers successfully settle with Navient for less than they owe. A settlement can involve:

• A Lump-Sum Payment

• Monthly Payment Arrangements

• A Combination of Both

Settlement terms vary by credit score, payment history, and whether you can offer a lump sum. But Navient typically requires you to be in default before entering negotiations. This step will temporarily damage your credit, but it may resolve the debt for significantly less than the total balance.

Related: Settling Student Loan Debt With Navient

2. Explore Bankruptcy

Eliminating student loans in bankruptcy isn’t easy, but private loans tied to for-profit schools can sometimes be discharged due to undue hardship or because they exceed the cost of attendance. For example:

• Undue Hardship Argument: Private loans lack the federal options (like income-driven repayment) that could prove you truly cannot repay.

• Fraudulent School History: Loans stemming from schools with known misconduct strengthen the undue hardship claim.

• Loans Exceeding Cost of Attendance: If Navient loaned more than the actual cost of your education, some or all of the debt might be treated differently—and potentially discharged without hardship.

Bankruptcy stays on your credit report for up to 10 years, but if the loans are unmanageable, it might be worth considering.

Related: Can You File Bankruptcy On Student Loans?

3. Stop Paying

Some borrowers, exasperated by failed appeals and poor customer service, consider walking away altogether. But before you do:

• Credit Damage: Defaulting severely impacts your credit score.

• Legal Action: Navient may sue, garnish wages, or place liens on your property.

• Cosigner Risk: If someone cosigned, they’ll also be on the hook for collections and credit ramifications.

The statute of limitations on private student loans varies by state and contract terms, making it risky to rely on waiting it out. Weigh your options carefully before choosing nonpayment.

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All these alternatives carry potential risks, so it’s wise to consult a student loan attorney or a financial professional.

Understanding your full range of choices can help you find a strategy that fits your needs—even if Navient’s private loan forgiveness program won’t work for you.

Figuring out Navient private loan forgiveness can be overwhelming. Denials, vague explanations, and confusing requirements make it hard to know where to start—or what to do next.

If you need help with your application, building a stronger case, or exploring your options, we’re here to help. Our student loan experts will simplify the process and give you a clear plan to move forward.

Book a call with a student loan expert.