Large Student Loan Servicer Banned From Service, Ordered to Pay $120 Million Settlement

Navient, once the largest student loan servicer in the United States, has been permanently barred from federal student loan servicing and ordered to pay a $120 million settlement following years of alleged regulatory and legal violations. The Consumer Financial Protection Bureau (CFPB) announced the proposed order against the servicer formerly known as Sallie Mae on Sept. 12. In 2017, the company at one point serviced loans of more than 12 million borrowers, half of which were accounts under its contract with the Department of Education, accounting for more than $300 billion in federal and private student loans. The CFPB estimates that hundreds of thousands of consumers may be eligible for redress in the settlement, but the agency has not yet determined a precise number of consumers, or the amount each individual will receive. ...