NATION: In recent weeks as the U.S. Supreme Vourt has taken steps to rule against the approval of student loan relief, the fallout of denial has caught up with one , major student loan servicing company. A recent decision made by the Consumer Financial Protection Bureau has cited the Navient Student Loan Servicing company for actions regarded as a matter of impropriety.
By Michelle Crawford-Sapenter
Today the CFPB states that , Navient has been ordered to pay $120 million in penalties and refunds. The decision comes after a settlement with the Consumer Financial Protection Bureau (CFPB) over what regulators described as "wide-ranging student lending failures"
The CFPB’s investigation revealed that Navient engaged in several abusive practices that are stated as being misleading borrowers about repayment options, improperly steering struggling borrowers into costly forbearance instead of more affordable income-driven repayment plans while, also, failing to inform borrowers about critical deadlines and requirements for maintaining eligibility for certain repayment benefits.
As part of the settlement, Navient is also banned from servicing federal direct loans.. The decision aims to provide relief to borrowers who were adversely affected by Navient’s practices.
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