Navient banned from federal student loans; to pay $120 million for 'years of abuse'
Headline from UPI
The Consumer Financial Protection Bureau said Thursday student loan servicing company Navient will be banned from servicing federal direct loans and must pay $120 million for what the agency called years of abuse.
UPI's own description from its feed. We collect headlines and these descriptions, not full articles; read the original reporting below.
The Consumer Financial Protection Bureau said Thursday student loan servicing company Navient will be banned from servicing federal direct loans and must pay $120 million for what the agency called years of abuse.
According to the Consumer Financial Protection Bureau, $100 million will be used to make payments to impacted borrowers in a settlement with the former servicer of student loans.
The settlement stems from a 2017 lawsuit brought by the bureau that casts Navient as a company that was far more concerned with its financial interests than the needs of vulnerable student loan borrowers.
If you have a federal student loan, it won’t ever be managed by Navient again under the terms of a settlement resolving a lawsuit by federal regulators accusing the company of abusing student borrowers.
The government’s top consumer watchdog is banning Navient from federal student loan servicing and ordering the company to pay $120 million for alleged lending failures. The settlement announced Thursday comes almost eight years after the Consumer Financial Protection Bureau (CFPB) sued Navient, form…
Welcome to The Hill’s Business & Economy newsletter {beacon} Business & Economy Business & Economy The Big Story Navient banned from federal student loan servicing Navient is being banned from federal student loan servicing and has been ordered to pay $120 million for alleged lending failures.
