Are you eligible for a $2,000 student loan settlement check? what to know

According to Newsweek , the payment originated from Consumer Financial Protection Bureauaccused the company of improperly steering distressed borrowers into forbearance programs instead of directing them to more affordable repayment options.

Navient denied the allegations but agreed to a settlement that included refunding $100 million to borrowers and imposing a $20 million penalty.

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The lawsuit also claims the company mishandled payments and caused credit harm to some borrowers, including disabled veterans.

Navient, one of the largest student loan servicers in the United States and formerly known as Sallie Mae, ultimately agreed to resolve the dispute without admitting wrongdoing.

The CFPB said eligible borrowers do not need to apply to receive the funds. Checks will be automatically mailed to eligible individuals.

According to Newsweek, some borrower Payments ranging from about $50 to as much as $2,000 have been reported.

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Kevin Thompson, CEO of 9i Capital Group, told Newsweek that borrowers whose loans are deferred could face years of financial consequences.

“If you had a loan before 2017 that was put on hold or otherwise mishandled by Sallie Mae (now Navient), you may be eligible for partial compensation,” Thompson said. However, he noted that the settlement did not admit fault and provided limited liability.

Alex Beene, a financial literacy lecturer at the University of Tennessee at Martin, said only a small percentage of borrowers tied to Navient are eligible for compensation.

Borrowers who unexpectedly drop payments can request a replacement through the settlement administrator listed on the CFPB website.