In a long-running litigation filed in Pennsylvania federal district court, the CFPB today filed a proposed stipulated order, which, if entered, would largely remove Navient from the federal student loan market, and require the company to pay a $20 million penalty and provide $100 million in relief to borrowers.
The case includes allegations that Navient mislead borrowers about income-driven repayment plans, botching payment processing, deceiving borrowers about its requirements for cosigner release, and misleading borrowers about credit reporting relief.
The CFPB’s press release is available here.
