Navient student loan settlement payments are arriving. What to know.

Student loan borrowers are starting to see payments from a settlement between the Consumer Financial Protection Bureau and loan servicer Navient that was finalized in 2024.

The CFBP, under the Biden administration, accused Navient of pushing borrowers into pause their payments even when they qualified for cheaper repayment plans, causing them to pay more interest. The agency also alleged other deceptive practices.

Navient, which has said it disagrees with the allegations, agreed to stop servicing federal student loans and to pay $120 million to settle the case. Most of that money, $100 million was set aside to compensate borrowers.

When the CFPB filed the lawsuit that ultimately led to the settlement in 2017, Navient handled more than 6 million student loan accounts under its contract with the Department of Education according to a 2024 news release announcing the proposed enforcement action.

The payments began more than a year after President Donald Trump effectively hamstrung the CFPB, causing consumer advocates to say that hundreds of millions in payments stemming from enforcement actions started in the Biden administration were in jeopardy.

Mike Pierce, a former CFPB official and head of the advocacy organization Protect Borrowers, said in a statement to Reuters that the administration’s actions had delayed payouts for more than a year, while giving the industry a “free pass” despite mounting student borrower defaults.

USA TODAY has reached out to Navient and the CFPB for comment and did not receive an immediate response.

Here’s what to know about the Navient settlement payments.

Borrowers who are eligible for payment from the settlement will receive a check in the mail, according to the CFPB website. The website indicates payments started Feb. 13.

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There have been multiple reports of consumers receiving checks in the mail on social media, primarily the r/StudentLoans subreddit. Payments appear to range from around $100 to as much as $2,000.

Consumers who believe they are eligible for payment but have not received one are directed by the CFPB to contact Rust Consulting, which is administering payments in the case.

Contributing: Reuters

This article originally appeared on USA TODAY: Navient student loan settlement payments: What borrowers need to know.