Finance
CFPB Bans Navient From Federal Student Loans, Sets Fine
- Firm to pay $120 million in fines, redress to borrowers
- Company exploited students and taxpayers, CFPB’s Chopra says
A Navient building in Wilkes-Barre, Pennsylvania.
Photographer: Kristoffer Tripplaar/Sipa/AP PhotoThis article is for subscribers only.
Navient Corp. will be banned from servicing federal student loans and must pay $120 million under a proposed settlement with the Consumer Financial Protection Bureau.
An investigation found Navient steered student-loan borrowers into more expensive repayment options and deprived them from more affordable income-driven plans, the CFPB said in a statement Thursday. Navient will have to pay a $20 million penalty and $100 million to harmed borrowers.