Govind Tekale
Navient could end up paying $100 million in compensation along with a $20 million penalty.
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If the court approves the order, Navient could face a permanent ban on facilitating loan services under the Federal Family Education Loan Program.
CFPB alleged that Navient steered borrowers into forbearance, even though they may have qualified for income-driven repayment plans.
Navient was found violating several regulations, including the Consumer Financial Protection Act, the Fair Credit Reporting Act, and the Fair Debt Collection Practices Act.
CFPB received a total of 40,600 complaints against Navient between 2011 and 2024, of which 33,308 were related to student loans and 3,259 were related to credit reporting.
Navient denied these allegations and stated that they are no longer a servicer or purchaser of federal student loans, having transferred this responsibility to a third party.
Navient is a repeat offender with a history of regulatory violations.
This is not the first time the CFPB has taken action against such malpractices; the agency has been supervising the student loan market since 2013.
CFPB Director Rohit Chopra said, “For years, Navient’s top executives profited handsomely by exploiting students and taxpayers.”
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