Market Data 
There’s a process for some private student-loan borrowers to get debt relief — but many of them might not know about it.
In April, Business Insider first reported that Sen. Elizabeth Warren, along with eight of her Democratic colleagues, were calling on Navient — a major private student-loan company — to cancel “decades-old predatory private student loans” under consumer protection law.
The issue came down to some borrowers not qualifying for relief under the borrower defense to repayment, which is a federal program that forgives student debt for borrowers who prove they were defrauded by the schools they attended. Those with private loans are not eligible for federal relief but under a provision known as the Holder Rule, private lenders can forgive student loans if students enrolled in a fraudulent school that had a relationship with the lender.
However, while Navient has a process for defrauded borrowers to get relief, many of them might not know about it because they have to request an application. The Project on Predatory Student Lending, which advocates for defrauded borrowers, published updated information on the steps borrowers need to take to apply for the relief — including an example of what the actual application looks like.
“We’re spreading the word to ensure that impacted borrowers—not just those that Navient hand picks—know that there is a path to relief,” Eileen Connor, president of the group, said in a statement. “We’re also calling on Navient and all lenders to do the right thing and cancel all student loans outright where there is evidence of fraud.”
According to the Project on Predatory Student Lending, borrowers with private loans who believe they were defrauded and want relief need to ask Navient for a School Misconduct Discharge Application by contacting Navient’s Office of the Customer Advocate or emailing [email protected].
Once completed, applications can be submitted to the same email address. The group wrote in its guidance that if Navient refuses to provide the application or does not respond to the application within 30 days, borrowers should submit a complaint to the Consumer Financial Protection Bureau.
While some borrowers have started to receive the application from Navient, Warren and her colleagues still urged the company to automate the process and give private borrowers the same relief federal borrowers may have already received.
“Navient should stop making borrowers apply for relief and instead automatically cancel student debt using information the company already has about whether borrowers attended schools that would entitle them to relief,” they wrote in their letter.
According to Navient’s response to the senators reviewed by The New York Times, the company is “committed to canceling all loans that meet the Holder Rule criteria.”
Still, Warren wrote on X that the process should not be “wildly confusing” — and all private borrowers who qualify for debt relief if they were defrauded should have no problem getting it.
Have you received an application for private student-debt relief from Navient, or are you still struggling to get relief? Share your story with this reporter at [email protected].
