US Bans Navient from Servicing Federal Student Loans: $120 Million Payment Ordered
Thursday, 12 September 2024, 06:07
US Bans Navient from Servicing Federal Student Loans
A U.S. regulator has officially banned Navient from servicing federal student loans. This decision comes as a response to a multitude of alleged failures in student lending practices.
$120 Million Payment Ordered
As part of the ruling, Navient is compelled to pay $120 million to remedy the consequences of its actions. This payment reflects the ongoing scrutiny faced by student loan servicers in the U.S.
Impact on Borrowers and the Industry
- The ban is expected to have significant repercussions for borrowers and their repayment processes.
- It may lead to increased regulatory oversight in the student loan servicing sector.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.