Student Loan Settlement: Navient Agrees to $120 Million with Consumer Financial Protection Bureau
Thursday, 12 September 2024, 08:09
Significant Student Loan Settlement
In a landmark decision, Navient has reached a $120 million settlement with the Consumer Financial Protection Bureau regarding its student loan service practices. This follows the company's ban from servicing federal student loans due to alleged mismanagement and fraud.
Details of the Settlement
- Navient must pay $100 million directly to harmed borrowers.
- An additional $20 million penalty will be imposed by federal authorities.
- This settlement marks a significant shift in regulation and deregulation regarding student loans.
As the landscape of personal finance continues to evolve, such actions may inform future regulations.
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.