US bans Navient from federal student loan serving, orders $120 mln payment

Navient

12/09/2024 13:44

Sept 12 (Reuters) - A U.S. regulator on Thursday said it
is banning Navient  NAVI.O  from servicing federal student
loans, and ordered the company to pay $120 million for
wide-ranging student lending failures.
    The U.S. Consumer Financial Protection Bureau said the ban
would prevent Navient from servicing federal Direct Loans, and
from directly servicing or acquiring most loans under the
Federal Family Education Loan Program.
    Thursday's settlement would resolve a lawsuit filed in
Pennsylvania in 2017. The payment includes $100 million of
redress and a $20 million civil fine, a court filing shows.

 (Reporting by Jonathan Stempel in New York; Editing by Chizu
Nomiyama)
 ((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters
Messaging: jon.stempel.thomsonreuters.com@reuters.net))