CFPB Bans Navient from Federal Student Loan Servicing and Orders the Company to Pay $120 Million for Wide-Ranging Student Lending Failures

September 12, 2024

The Consumer Financial Protection Bureau (CFPB) has filed a proposed order against the student loan servicer Navient. If entered by the court, the proposed order would permanently ban the company from servicing federal Direct Loans and would forbid the company from directly servicing or acquiring most loans under the Federal Family Education Loan Program. These bans would largely remove Navient from the student loan servicing market. Under the terms of the order, Navient would have to pay a $20 million penalty and provide $100 million in redress for harmed borrowers. CLICK HERE (Trusted Partner Link) to read the CFPB's press release.

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