CFPB Bans Navient ($NAVI) from Federal Student Loan Servicing in Landmark Settlement, Orders $120 Million Payment

Sep 12, 2024, 01:11 PM

The Consumer Financial Protection Bureau (CFPB) has taken decisive action against Navient ($NAVI), a prominent student loan servicer. The CFPB is seeking court approval for a final judgment that would permanently ban Navient from servicing direct loans and acquiring or servicing Federal Family Education Loan Program (FFELP) loans. Additionally, Navient is ordered to pay $120 million in refunds and penalties due to wide-ranging student lending failures. This settlement aims to address years of failures and lawbreaking by Navient in its federal student loan servicing practices. The settlement is considered a landmark in addressing student loan servicing issues.