The Consumer Financial Protection Bureau (CFPB) and student loan servicer Navient have reached a tentative agreement that would require Navient to pay $120 million and ban the company from ever servicing federal student loans again. The CFPB accused Navient of steering borrowers into costly repayment options and depriving them of more affordable income-driven plans.
The Consumer Financial Protection Bureau and Navient have reached a tentative agreement that would require the student loan servicer to pay $120 million and ban Navient from ever servicing federal student loans again.The settlement still needs to be approved by a court.The CFPB accused Navient of steering student loan borrowers into costly repayment options and depriving borrowers of entering more affordable income-driven repayment plans.
'This agreement puts these decade-old issues behind us. While we do not agree with the CFPB’s allegations, this resolution is consistent with our go-forward activities and is an important positive milestone in our transformation of the company,' the company said in a statement.The company also noted that it stopped servicing federal student loans and has since transferred accounts to a third party.
Student Loans Navient CFPB Settlement Debt Relief
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