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The CFPB sued Navient in 2017, alleging the company misled borrowers, mishandled payments, and failed to properly assist those struggling with repayment. As part of the 2024 settlement, Navient agreed to provide $100 million in payments to affected borrowers and pay a $20 million penalty, and it will be permanently banned from servicing federal Direct Loans. Eligible borrowers began receiving checks by mail starting February 13, 2026, and no action is required to receive payment.
Source: Consumer Financial Protection Bureau, “CFPB Takes Action Against Navient and Secures $120 Million in Relief for Borrowers,” and Navient settlement payment information, February 2026.
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