Navient Banned to Service Federal Direct Loans, To Pay $120M to CFPB

A proposed order has been filed by the U.S. Consumer Financial Protection Bureau ("CFPB") against Navient Corporation (NAVI) , according to which the student loan servicer will be permanently banned from servicing federal direct loans and directly servicing or acquiring most loans under the Federal Family Education Loan Program. NAVI will have to pay $120 million for years of student lending failures, which includes$100 million in restitution and a $20-million civil penalty. The CFPB's Remarks About Navien ...