(Reuters) – A U.S. regulator on Thursday said it is banning Navient from servicing federal student loans, and ordered the company to pay $120 million for wide-ranging student lending failures.
The U.S. Consumer Financial Protection Bureau said the ban would prevent Navient from servicing federal Direct Loans, and from directly servicing or acquiring most loans under the Federal Family Education Loan Program.
Thursday’s settlement would resolve a lawsuit filed in Pennsylvania in 2017. The payment includes $100 million of redress and a $20 million civil fine, a court filing shows.
(Reporting by Jonathan Stempel in New York; Editing by Chizu Nomiyama)
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