On September 12, 2024, the Consumer Financial Protection Bureau (CFPB) filed a request for a permanent ban against student loan servicer Navient, citing repeated regulatory violations and pervasive predatory practices. This decision follows previous actions by the U.S. Department of Education and state officials to provide restitution to borrowers harmed by Navient’s history of illegal servicing practices. If granted, the CFPB’s order would require Navient to pay up to $120 million in penalties and redress to affected borrowers.
Stephanie Hall, senior director for Higher Education Policy at the Center for American Progress, responded with a statement:
"The CFPB’s action against Navient represents a major victory for student loan borrowers across the country. For years, this company misled borrowers about their repayment options, made false promises, overcharged borrowers, and ruined financial futures. This permanent ban on Navient’s involvement in loan servicing will protect borrowers from further harm and send a message to other federal student loan servicers that deceptive practices will not be tolerated."
For more information or to speak with an expert, please contact Mishka Espey at [email protected].
