The agreement settles a lawsuit brought by the Consumer Financial Protection Bureau in 2017, which accused the company of misleading student loan borrowers and processing their payments incorrectly.has been banned from servicing federal student loans and must pay out millions of dollars as part of a new settlement.Eligible borrowers will receive a check directly from the Consumer Financial Protection Bureau. They are not required to take any action.
“For years, Navient’s top executives profited handsomely by exploiting students and taxpayers,” said Consumer Financial Protection Bureau Director Rohit Chopra. “By banning the notorious student loan giant from federal student loan servicing and ensuring the winddown of these operations, the CFPB will finally put an end to the years of abuse.”In 2022, the company agreed to pay a $1.85 billion settlement over claims the company engaged in unfair practices.
And in 2014, Navient was ordered to pay almost $100 million for illegally overcharging nearly 80,000 military service members.