Navient has ceased servicing federal student loans, a significant shift for a company that was once one of the largest student loan servicers in the country.
Navient's Exit from Federal Loan Servicing
This change occurred following a comprehensive settlement with the Consumer Financial Protection Bureau (CFPB). The resolution of this legal action resulted in substantial outcomes for Navient:
- Permanent Ban: Navient is permanently prohibited from servicing federal student loans. This means borrowers with federal loans previously managed by Navient have had their loans transferred to other servicers.
- Financial Settlement: As part of the agreement, Navient was required to pay $120 million.
This permanent ban marks a pivotal moment in the landscape of student loan servicing, signifying Navient's complete withdrawal from its role in managing federal student debt.
