CFPB orders Navient to pay $120M for student lending ‘failures’

The Consumer Financial Protection Bureau, or CFPB, filed a proposed order against the student loan servicer Navient for its “years of failures and lawbreaking.” The CFPB stated: “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 a market where it, among other illegal actions, steered numerous student loan borrowers into costly repayment options. Navient also illegally deprived student borrowers of opportunities to enroll in more affordable income-driven repayment plans and forced them to pay much more than they should have. Under the terms of the order, Navient would have to pay a $20 million penalty and provide $100 million in redress for harmed borrowers.”