Navient to Pay $100 Million in Settlement for Allegedly Misleading Borrowers on Student Loans

A $100 million class action settlement with the Consumer Financial Protection Bureau (CFPB) may provide up to $2,000 to thousands of students who were allegedly steered into forbearance by Navient, one of the largest student loan servicers in the US. The lawsuit accused Navient of improperly handling student loans and failing to guide borrowers toward income-driven repayment plans. As part of the settlement, Navient has agreed to pay $100 million in refunds and a $20 million fine, and is barred from servicing federal student loans. Those who had Navient loans placed into forbearance in 2017 or earlier are eligible to claim payments.