Am I Eligible to Have My Navient Student Loans Forgiven?


Dear Steve,

I’m retired Air Force and went back to school after I retired.

I didn’t have the GI Bill, so I had to finance my schooling through loans.

The worst part is I went to the Art Institute in 2006 or so and then made the mistake of attending that school again and in a different state to get a second degree because I couldn’t find work in my first-degree program.

Then when I got my second degree, nobody would hire me.

So I’ve been working freelance since my second graduation and am finding it very difficult to repay my loans. I pay $830/month just on private loans (my federal loans are still on hold due to Covid-19.

I’d like to know if there is a way to get rid of this debt or have it forgiven?

I’ve tried refinancing, but my credit to debt ratio means I need a cosigner, and I have no one who will co-sign. So I’m just looking for options.



Dear Kem,

Your situation makes me cringe following the recent announcement of the Navient private student loan settlement.

Eligible loans were disbursed after 2002. It sounds like yours were. Check.

When you attended the Art Institute, it was owned by Education Management Corporation (EMC). EMC is one of the schools on the approved list. Check.

But here is where it stinks; according to the Navient settlement agreement, your loans would be considered trash and forgiven but only if you had stopped making payments.

“In order to qualify for Categories 1 through 3, below, a private education loan must be charged-off (The Navient Parties policy for Charge-off accounts due to delinquency requires a loan to be charged-off by the end of the month in which the interest on or principal of that loan becomes 212 days or eight billing cycles past due, whichever is earlier.) as of the Debt Relief Forgiveness Date [June 30, 2021]

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(Past Due Status); and (1) have reached Past Due Status no more than seven years before the Debt Relief Forgiveness Date, or (2) be within the applicable statute of limitations based on the borrowers last known address as of the Debt Relief Forgiveness Date.” – Source

You are going to get screwed over here because you kept making payments.

For more details on the Navient student loan settlement agreement, click here.

I’m not convinced that dragging a cosigner into this will improve your life. The cosigner will be 100 percent on the hook for loans you already can’t afford to pay.

One option is to consider settling the Navient private student loans for much less than you owe. There have been very attractive settlement arrangements made in cooperation with a small department at Navient.

Who knows what they will do in the future, but for now, the Navient student loan forgiveness program is full of holes, and many people like yourself will fall through it.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

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Damon Day - Pro Debt Coach

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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