Navient reaches $120 million settlement with CFPB for misleading student loan borrowers

[Wicked Blue]

Source: CNBC

Student loan giant Navient has reached a $120 million settlement with the Consumer Financial Protection Bureau over its practices with student loan borrowers, the company tells CNBC.

The CFPB sued Navient in 2017 for misleading borrowers and providing them with bad information, causing many to pay more than they needed to.

The consumer watchdog agency also accused Navient of steering student loan borrowers into expensive forbearances, causing many to pay steep interest charges.

Additionally, CFPB alleged that Navient miscalculated borrowers’ payments and tarnished the credit reports of disabled borrowers, including severely injured veterans.

Read more: https://www.cnbc.com/2024/09/12/navient-reaches-120-million-settlement-with-cfpb-for-misleading-student-loan-borrowers.html

[SheltieLover]

1. I know someone this happened to.

$60k in student loans quickly turned into $180k because the person was given incorrect information & pushed into forebearance 3 times.

[SunSeeker]

3. Fucking unconscionable. There should be CEOs in jail for that shit. nt

[SheltieLover]

4. Absolutely!

Each time the person was pushed into forebearance, they capitalized the interest.

I agree stiff prison sentences for CEOs & others responsible would cut down on this type of consumer abuse!

[ret5hd]

2. Lemme guess:

$120M settlement
$500M excess profits

yeah, they sure won’t do that again.

[FredGarvin]

5. Someone should have done something to prevent this obvious rip-off

I think Liz Warren tried to bring light to this.

Too progressive...alarmist, they called her.

[PSPS]

8. Don't forget ...

Deduct a few more million for the "campaign contributions" to the GOP to continue their crusade to eliminate the CFPB.

[Wicked Blue]

10. That's what I thought about this piddling settlement

Insufficient deterrent

[TheBlackAdder]

6. I selected NJ's HESAA program to protect against rogue lenders.

While the rates are not the best and not the worst, they have a solid reputation and won’t jam borrowers without trying to work with them first.

They won’t sell off your loan to some predatory company either.

[FredGarvin]

7. A sad thing

That there are middlemen charging high rates, while this money is loaned from the US treasury at 1/2 the cost that the loans cost.

Why is this even a thing?

[PSPS]

9. "Why is this even a thing?"

Republicans like this business model. It keeps their "campaign contributions" coming in from these parasites.